Investors in Timisoara request support

Timisoara Mayor Gheorghe Ciuhandu said the city had become the second-largest economic center after Bucharest in the last ten - 11 years, due to its favorable geographical location, qualified workforce and cultural similarity to Central Europe. "That has been reflected in the economic results recorded by the city. Its GDP is comparable to the average level in Hungary, while compared to the national average Timis county's GDP is at least 37 - 40 per cent higher." Ciuhandu also specified that the authorities were expected to create favorable conditions for business development: "In our city development strategy, we have focused on several directions. The automotive industry is already a trademark for our city and so is IT. In the machine building sector and in the light industry we are aiming at promoting various segments to diversify the economy. In addition, we have focused on the tertiary sector in the last few years. We have also tried to develop cultural and business tourism. The ten-year strategy was formulated in 1999 - 2000. A 200-strong team helped with the creation of the strategy," said Ciuhandu. On that note, Maria Grapini, president of the bord at Pasmatex Group, talked about the authorities to create a more efficient strategy aimed at supporting the private business sector, especially under the current economic circumstances. "After all the budget of the local administration and the central budget cannot exist without sources from the private sector," said Maria Grapini. She also said that Timisoara should follow the example of some of its European sister cities and allocate more funds for programs supporting its business community. Emil Mateescu, strategy counselor to the president of the Timisoara Chamber of Commerce, Industry and Agriculture, referred to the assistance that CCAI can offer to both Romanian and foreign investors. "Apart from the events that we organize, we also grant support to companies that come to us. They can visit many of our offices, such as business centers, regional centers for investment promotion, regional centers for competitiveness and technological information," said Mateescu. He also mentioned the creation of a regional center for the sustainable development of the historical Banat. Having a major impact on the economic development of any county, the road infrastructure is one of the problems raised by the Timisoara business community, even though the Regional Road and Bridges Department (DRPD) officials presented many development projects. According to DRPD deputy manager Sorin Lucaci, works were underway on the Pan-European corridor 4, the Arad - Timisoara freeway. He also said a number of projects were in progress for the modernization and consolidation of a number of roads administrated by the local roads department. In turn, Alice Serban, coordinating lawyer, Hategan Law Office, emphasized the importance of legal consultancy during periods of economic downturn. "When an interesting project emerges, involving large amounts of money, everyone has the tendency of seeing the positive side of things, especially at times like these. However prudence is advisable because not everything that looks good on paper is actually going to be beneficial to our companies," said Serban. She also recommended that companies should use certain contract mechanisms that can help them avoid difficult situations with payments. Directly involved in implementing the Government's public finance strategy and tax policies, the Timis Public Finances Department can be regarded as a barometer, measuring the pace of the local economy. In spite of the economic crisis, the tax collection rate declined by just three per cent in the first quarter of the year compared to the same period of 2008, according to Aurelian Candea, deputy coordinating manager with the Timis Public Finances Department. While cost cuts are a popular theme these days, Constantin Ehling, Head of Business Sales Timisoara Region, Cosmote Romania, told the participants how his company can help them reduce communication costs, emphasizing the importance of calibrating the offer to clients' needs. "It is a well-known fact that reducing costs for client does not only imply offering them access to lower tariffs, but also offering each of them appropriate solutions," said Ehling. He added that addressing clients' needs should be the main priority and telephone companies should offer them personalized solutions. Stefan Versemann, general manager passenger sales, Romania and Moldova, Deutsche Lufthansa AG, spoke about the important role that Romania has to play in the development of his company's operations. At the same time, he also presented some of the company's medium and long-term plans. Specifying that the company recorded 550,000 passengers on this market in 2008, Versemann indicated that the company would invest 150 million Euro in modernizing lounges worldwide. The program is part of a medium and long term investment strategy and should be completed by 2013. Barbara Tarullo, commercial attach? with the Italian General Consulate in Timisoara, spoke about the interest shown by the Italian investors for that region. She indicated that they continued to invest in spite of the existing difficulties. The sectors of interest are varied: "For example, Italian investors typically invest in sectors such as agriculture, energy, bio-fuels, service and real estate," said Barbara Tarullo. She admitted that the crisis had affected investors, but indicated that those who had started solid operations and created many jobs will continue to hold a strong position on the market.