Panagiotis Loukas, general manager of Greece's Edrasis Construct, which specialises in foundation works, expects the construction market to resume growth only in mid-2012, considering that the real estate market will continue to have funding problems, and that infrastructure works do not seem to be a priority of the Romanian authorities.

"I don't foresee a rise of the constructions market before mid-2012. The first sector that will recover will be the infrastructure sector, but only if the state finds and allocates the necessary funds for the projects. The real estate sector will not recover before the end of 2012 because of the lack of funding from banks and the high number of projects put off or cancelled," Loukas explains.

The company expects a 40% turnover decline this year, to 12 million euros, and at best a stagnation next year.

"This year I only saw political crises and a lack of required leadership. Therefore, I believe the real crisis will hit in early 2010, a year I am very pessimistic about," says Loukas, who believes business will return to 2006 levels. The company was involved in foundation works in shopping centres such as AFI Palace and Sun Plaza, as well as in the construction of residential complex Asmita Gardens.

As investments in the real estate sector declined, the company turned to works financed from the state budget and works as a subcontractor for building a water treatment plant in Braila and on building the foundations for the desulphurisation plants in Turceni Energy Complex (CE Turceni).

"Last year we used to have around 10-15 operating construction sites, while now we have only 5-7 projects. This has prompted us to focus on projects in the public sector and on projects co-funded by the EU. But I have great reservations as to the Romanian state's ability to finance infrastructure projects, although this