The main governing party, PSD,  has worried multinational companies at the end of 2016 and the start of 2017 after a series of declarations, especially regarding “rumors” about their involvement in the street protests that have followed the adoption of controversial government decree 13.

     The PSD head of the parliamentary committee that supervises the activity of the Romanian Intelligence Service (SRI) had asked the Service to “investigate” the companies’ possible involvement in the demonstrations.
     Later, another declaration made by a PSD heavyweight, the party’s executive president, Senator Niculae Badalau, was seen by the media as offensive towards the multinational companies. Badalau said that the governing coalition PSD-ALDE will come very soon with a modification of the legislation that will allow the adequate taxation of the profits made by multinational companies.
     Is PSD heading for a confrontation with the multinationals?
     Short answer: Most probably not. Two issues should be outlined here:
1.       The taxation of profits made by multinationals in order to avoid the erosion of the tax base (BEPS) is not a PSD initiative but an European one. All the EU countries must adopt legislation in that area because of the EU Directive 1164/2016 that sets the framework for preventing tax-avoiding practices.
     It should be fully implemented until 31st December 2018 but each country must send to the European Commission all the information regarding the fight against BEPS.
The Government went further and drafted a legislative project to be introduced in the Parliament that will make Romania part of OECD’s Project BEPS.
     In other words, PSD is addressing a legitimate issue concerning European legislation that is going to be implemented, it does not come with a direct threat towards multinational companies. PSD’s executive president had just just communicated a state of fact.
2.       The leaders of the coalition have made conciliatory gestures towards multinationals.
     Prime Minister Sorin Grindeanu and dissident PSD former Vice-President Mihai Chirica (mayor of Iasi) have taken a different approach, saying that the multinational companies should be protected.
     Grindeanu even met with the representatives of powerful multinational oil companies OMV-Petrom and ExxonMobil in a clear demonstration that the Government will not take a confrontational path towards this type of companies.
     Dragnea himself sent a message later by praising another international company in Romania, Lidl supermarket chain in order to show that he does not have something specifically against this type of companies.
     In conclusion, it seems clear now that the leaders of the governing coalition are now more favorable to a dialogue with the multinational companies, not confrontation.
     With the political tension decreased significantly, PSD and the PSD-led Government seem to have reversed to their old position towards foreign investors: They are open to dialogue and cooperation and their actions are different from the rhetoric seen in complex political situations.

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