The level of foreign investments attracted in Romania may come to a halt due to the lack of a developed infrastructure and education.
Serban Toader, a senior partner with KPMG, the domestic arm of one of the world's largest consulting and audit services provider, says the poor infrastructure and training of personnel are the main obstacles in the way of Romania's economic development.
Covering the current account deficit and keeping inflation under control have become the main challenges the Finance Ministry is trying to address. As for infrastructure and workforce, no solutions have been found yet, believes Toader.
"Risks related to inflation and the current account deficit are mentioned frequently. Macroeconomic risks are permanently considered by the central bank and the Finance Ministry. I believe inflation must be seen as the biggest threat to any economy, because it is treated with medicines that are not easy to swallow," says Toader.
The first solution to Romania's two "hot" issues would be "going beyond the stage of complaining about shortages and taking immediate action". The more active involvement of the private sector in the public education of young people could also solve some of the problems of the educational system.
Despite risks related to infrastructure and workforce, the Romanian economy has still managed to lure foreign investors.
"The reasons they came here are not related to taxation only, but also to the fact that we have a functional market economy, an appropriate institutional framework and that we are EU members," the head of KPMG explains.
Another advantage Romania has is the progress the Romanian legislation has made towards ensuring ownership rights for foreign investors.
Major consultancy and audit groups' decision to come to Romania was not necessarily based on factors such as the friendl