Sustained and sustainable economic growth in Bucharest-Ilfov Region. Liviu Rancioaga, ADRBI

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1 Sustained and sustainable economic growth in Bucharest-Ilfov Region Liviu Rancioaga, ADRBI

2 Zoom in on Romania

3 ROMANIA Key figures Population: 19,9 mil citizens GDP: 166 bill. Euros* GDP Growth rate, 2015: 3,7% Inflation: 0,5 1%* Unemployment: 6,5 7%* (In Bucharest and big cities: 0,5 2%) Bucharest GDP stands at 131% of the European average Cluj-Napoca, Timisoara and more Romanian cities GDP stands at 70 85% of the EU average Exports, 2015: 54,5 bill. Euro * Estimation announced for 2016

4 ROMANIA Fiscal Policy Tax on Profit: 16% (flat) Tax on Dividends: 5% (flat) General VAT: 20% VAT on apartments: 5% (for apartments worth up to approx Euro) VAT on lands / buildings: 0% (when transaction between companies) Property tax: Residential: 0,1 0,3% / year. Commercial: 0,4 1,5% Transaction costs: 2 3% for amounts up to Euro. For larger amounts the % can drop as long as 1 1,2% So, the fiscal pressure is one of the friendliest in the EU; a more accessible tax system is the next step for growth. * Estimation announced for 2016

5 The Romanian FDI stock , , ,8 48,8 51,4 53,7 42,8 21,9 15 9, EUR billion Source: Why Invest in Romania, investromania.gov.ro

6 FDI stock by country of origin (EUR m) 2014: Netherlands: 23% Austria: 16.1% Germany: 12.33% Cyprus: 7.11% France: 6.8% of total FDI Source: Why Invest in Romania, investromania.gov.ro

7 Discover Bucharest-Ilfov Region BI Region Bucha rest Ilfov County % of BI Region in RO Area km % 86.9% Bucharest Capital City, with 6 districts - 8 towns - 32 communes - 91 villages Pop ulati on 2,272,163 inh % 17.11% 11.29

8 Discover Bucharest-Ilfov Region One of the 276 EU NUTS 2 regions, one of 28 Capital regions, the 2 nd richest in Eastern part of the EU - GDP per capita in PPS (35,600 =129% EU average) more than all the statistical regions of Bulgaria, Hungary, Poland, Slovenia, Croatia, Cyprus, Malta and the Baltic countries, but also more than Berlin, Attica, Comunidad de Madrid, Lazio, Metropolitan Area of Lisbon.* *Eurostat, 2014 (published 2016)

9 Discover Bucharest-Ilfov Region *Eurostat, 2014 (published 2016)

10 Structure of the BI economy Structure of the BI economy 1% 24% 75% Services Industry and construction Agriculture Services: from 53,1% in 1995 to 75% in

11 Relation between FDI stock and number of employees At the end of 2014, Bucharest-Ilfov region: more than EUR 35.6 billion (59.2%) of the total FDI, followed by Center Region (9.7%) and West Region (7.7%) FDI Stock (EUR bn) There is a strong relation between FDI and the number of employees. Source: Why Invest in Romania, investromania.gov.ro

12 Education Top 3 University Centers: Bucharest - 33 Universities Cluj - 10 Universities Iasi - 10 Universities Number of graduates/university center ( 000, 2014) The predominant languages in universities are: 90 % 26 % 17 % 8%

13 Regional Development Romania Bucharest-Ilfov Population Unemployment Rate 6.6% 4.6% (<2%)* Nat. Ag. Employm. Employees Companies (24.93%) Companies / 1000 people Industrial Parks 70 2 Gross avg. earnings (EUR) GDP/capita (EUR) State aid intensity 10-50% 15% Bucharest / 35% Ilfov

14 Regional Development Plan of Bucharest-Ilfov (I) a product of BIRDA a strategic document that outlines the priorities for the Bucharest-Ilfov development region in terms of competitiveness, social cohesion and sustainable development and meet the specific challenges for Available on 14

15 Regional Development Plan of Bucharest-Ilfov (II) Global Strategic Objectives Consolidating the regional competitiveness Reducing intraregional disparities Sustainable urban and rural development Bragadiru Park, Regio project 15

16 Regional Development Plan of Bucharest-Ilfov (III) Specific Objectives OS 1. Increasing competitiveness of SMEs OS 2. Strengthening research, technological development and innovation OS 3. Strengthening social and territorial cohesion in the region OS 4. Promoting sustainable transport and reducing bottlenecks in transport networks OS 5. Improvement of environment and supporting sustainable development in the Bucharest-Ilfov 16

17 Regional Development Plan of Bucharest-Ilfov (IV) Environmental Quality Green space per capita in Bucharest is situated slightly below European norms (23.21 sqm / inhabitant vs. 26 square meters / inhabitant required). Groundwater presents quality deterioration: a quarter of the groundwater monitored in Bucharest Ilfov region presents exceeded threshold values for certain pollutants and 7 communes are classified in the national list of vulnerable areas to nitrate pollution. Increasing demand for drinking water in the Bucharest Ilfov (34% compared to 2005) is not covered by the existing distribution capacity. Collection, selection and storage of waste is undersized to waste production recorded in the region. 17

18 Regional Development Plan of Bucharest-Ilfov (V) Improving the environment and quality of life Improving the quality of natural environment: Increasing the efficiency of water management (supply, treatment, reuse) Increased efficiency in waste management (reuse, recycling, recovery) Improving air quality through investments in green infrastructure Improving capacity to adapt to climate change and disaster response, including prevention and risk management Improving the quality of built environment: Improving spatial and urban climate Sustainable valorisation of national and local cultural heritage Leisure facilities development == Funds needed: million euro for 131 total projects 18

19 Three major projects to be implemented in the region for the period Name Operational Programme Specific objective Extreme Light Infrastructure - Nuclear Physics (ELI- NP), phase II Rehabilitation of railway line Bucharest-Henri Coandă Airoport Metro line 5 Râul Doamnei Eroilor section, including Valea Ialomiței Competitiveness O.P Large Infrastructure O.P (priority axis 1) LIOP (priority axis 1) Strengthening the research, technological development and innovation Promoting sustainable transport and reducing bottlenecks in transport networks Improve the environment and supporting sustainable development 19

20 Financing through EU Funds Human Capital Operational Programme Jobs for Youth employment initiative Improving the situation of NEETs Jobs according to National Competitiveness Strategy and The National Strategy for Research, Development and Innovation Social inclusion and combating poverty Community Led Local Development (CLLD) Education and skills Technical assistance Regional Operational Programme 12 priority axes in RO 5 priority axes in B-I. Region Low-carbon economy - energy efficiency in buildings, public lighting and urban mobility Urban regeneration Developing cultural heritage County road infrastructure CLLD infrastructure Educational infrastructure Competitiveness Operational Programme Investments projects for R&D department of enterprises Investment projects that creates R&D synergies with Horizon 2020 Innovative projects, which will achieve an innovative product (both for goods and services)

21 Financing through the Ministry of Economy 9 initiatives, with a total 2016 budget valued at EUR 34 million through the following programs START - supporting the development of start-ups founded by debutant entrepreneurs Rural - supporting the development of SMEs in the rural areas COMMERCE - strengthening the marketing capacity of companies and develop comm. activity Microindustry supporting the development of the industrial and manufacturing sectors SRL-D supporting the development of start-ups founded by debutant entrepreneurs Women in Management improving the performance of businesses run by women Business Incubators sustaining the development of incubators that facilitate startups Growth Arts & Crafts strengthening the marketing capacity of companies and developing commercial Activity UNCTAD / EMPRETEC strengthening the marketing capacity of companies and developing commercial activity TIMM strengthening the marketing capacity of companies and developing commercial activity Source: Why Invest in Romania, investromania.gov.ro

22 Which opportunities of the EU Urban Agenda for Bucharest-Ilfov Region? 2015 Let's have a look 2016

23 BUCHAREST-ILFOV REGIONAL DEVELOPMENT AGENCY Intermediary Body for Regional Operational Programme 163 M. Eminescu Street, Bucharest, Romania Phone /Fax: ; Phone helpdesk: contact@adrbi.ro; liviu.rancioaga@adrbi.ro / adrbi THANK YOU FOR YOUR ATTENTION!