Romania suffers from a “signature strike”, according to a headline in Bloomberg Businessweek. The anticorruption campaign has put major public investments on hold, as the local officials fear to sign any contract, the article says.

The European Investment Bank (EIB) has approved EUR 1.7 billion in loans for infrastructure projects but can’t get anyone to sign the loan documents. “We find ourselves in limbo,” says Dietmar Dumlich, EIB’s representative for Romania, quoted by Bloomberg Businessweek.

Romania needs new investments, as its infrastructure is the worst in the European Union, according to the World Economic Forum, but those responsible for signing the contracts are afraid that any signature may bring them in the National Anticorruption Directorate’s attention.

The article focuses on Romanian billionaire Ion Tiriac’s intention to finance an ice rink in Bucharest. Although he was willing to pay EUR 2 million of his own money for the project, he couldn’t convince the authorities to provide him with a plot of land and to file for EU funds to cover some of the costs. “They are afraid to even breathe because it may lead to the anticorruption prosecutors’ office,” the businessman says he was told.

Romania’s infrastructure projects have been one of the biggest sources for corruption. The country is currently working on new public procurement legislation and rules to prevent such cases in the future.

Project in Romania: Public procurement to be conducted entirely online

Romanian Finance Minister: Public procurement reform involves 18 institutions

Council of Europe report: Romania shows an unprecedented determination in combating corruption

editor@romania-insider.com