Florin Leuca, business consultant: Many SMEs have blocked investments and hiring

The presidential elections in Romania are deeply influencing the economic climate, and the effects are already being felt in the decisions of entrepreneurs. In recent weeks, there has been a significant increase in skepticism among the business community, driven by political uncertainty and fears regarding a possible change in the country’s direction given the current account deficit, the budget deficit, the dependence on European funds and foreign investments, as well as the tense geopolitical situation, shows an analysis by business consultant Florin Leuca, who has provided business consulting for over 100 companies in Romania, London and Vienna.

“This is the highest dose of skepticism I have encountered in recent years among entrepreneurs, who have been very reserved lately regarding business changes. Many have decided to temporarily freeze investments and hiring, and some are announcing that they will continue to take this measure if Romania’s political direction moves away from European values and the principles of capitalism. Many entrepreneurs are trying to take measures in advance and make a realistic plan in the scenario in which the result of the May 18 vote indicates an anti-Western orientation. This is not just an emotional reaction, it is a defense strategy. Entrepreneurs have learned over the years that any political imbalance is immediately reflected in the economy, in access to financing, in market consumption, and in the trust of customers and business partners,” says business consultant Florin Leuca.

SMEs – the most vulnerable segment in times of instability – react quickly to changes in Romania’s macroeconomic context. The uncertainty regarding the election outcome, together with a tense external climate, determines a temporary withdrawal from any development plan, as well as capital outflows from the market. More and more companies adopt a “wait and see” attitude in the absence of guarantees regarding economic and political stability.

Granting loans to entrepreneurs, delayed during this turbulent period

At the same time, more and more entrepreneurs are complaining about significant delays in the lending process. Banks are hesitant to approve new financing, and some files under analysis are suspended until after the second round of the elections. Practically, the entire financing activity is on hold.

Amidst these uncertainties, consumption – the main driver of the Romanian economy – is starting to decline. In this context, systemic risks are evident: declines in private incomes, restructuring, insolvencies, and a possible wave of unemployment. Specialists warn that a contraction in consumption could even trigger a technical recession instead of the previously expected growth of 2-3% GDP, if rapid economic stimulus measures are not taken.

Behind this apparent silence in the business environment, according to experts, is only the “tip of the iceberg.” Many companies have temporarily halted investments, others have reevaluated their expansion plans, and some are considering restructuring, depending on the political direction Romania is heading.

For now, the entrepreneurial environment remains in a state of careful observation, but also of growing concern. The end of the electoral period is awaited not only with political interest, but also with the hope of a return to economic predictability and decision-making stability.

In the absence of clear signals of stability and pro-Western orientation, many entrepreneurs believe that Romania risks entering a vicious circle: lack of confidence from foreign investors and the global financial system – economic blockage – downgrade of the country’s rating – loss of foreign investments and decrease in domestic ones – restructuring – recession.

The general conclusion of the business environment, expressed discreetly but emphatically: if the election result weakens Romania’s connection with the European Union, with the principles of capitalism and with the freedom of international trade, investor confidence will drop dangerously, and isolationism will cost us dearly.

With over 10,000 hours of mentoring, coaching, and business consulting, Florin Leuca helps businesses grow exponentially through a recovery, consolidation, and expansion plan, using his own strategies, personalized in each case. To date, he has provided a new direction for growth for 100 businesses from various industries in Romania, London, and Vienna. Florin Leuca is the first Romanian to obtain the highest distinction upon graduating from the MBA program at the oldest business school in the world, ESCP Business School, London – Paris. He also provided management consulting and mentoring in the business accelerator of the global group BNP Paribas in the center of Paris.

Florin Leuca also taught International Trade Law and Private International Law to over 4,000 undergraduate and master’s students for 6 years at the Faculty of Law of the University of Bucharest, with a focus on commercial companies and international trade activities.

He is a business and team coach, certified by the ICF (International Coaching Federation) and an accredited trainer, constantly participating in the best management education programs, coaching schools and continuing professional training in the world.