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Title page 1

Contents 6

Foreword 4

Acknowledgments 5

Executive Summary 8

Main findings 9

Key recommendations 11

1. Economic and structural context in Romania 14

Macro-fiscal context 15

Productivity and business dynamism 16

Product market regulations 19

Recent reforms to facilitate the set-up and operation of businesses 20

References 28

2. In-depth assessment of the business licensing system 31

Assessment of the overall features of the business licensing system 32

Assessment of the complexity of licences 42

References 47

3. Towards a roadmap for simplifying business licensing procedures 48

Establish a single Business Licensing Framework 49

Set-up a centralised business licensing digital platform 62

Create an institutional framework to implement the licensing reform 68

References 72

Annex A. Licensing institutions included in the Business Licensing Inventory 73

Tables 7

Table 2.1. Results of the assessment of administrative procedures 44

Table 3.1. Actions for effectively implementing "silence is consent" 54

Table 3.2. Actions for enabling data exchange across the public administration 56

Table 3.3. Actions for merging of licences and streamlining of licensing procedures 56

Table 3.4. Actions for reducing licensing processing timelines 57

Table 3.5. Actions for rationalising the identification of business licensing procedures 59

Table 3.6. Actions for updating the Business Licensing Inventory 59

Table 3.7. Actions for creating and applying a risk-based assessment 61

Table 3.8. Actions for providing effective licensing information 65

Table 3.9. Actions for creating a business licensing platform 68

Table 3.10. Actions for expanding the mandate of the business licensing coordinating body 69

Table 3.11. Actions for supporting the implementation and improvement of business licensing reforms 71

Figures 6

Figure 1.1. Romania has been catching up with OECD economies 15

Figure 1.2. Inflation is below its peak, but fiscal deficits and debt persist 16

Figure 1.3. Labour productivity growth has decreased 17

Figure 1.4. In international comparison, the labour productivity level is below average despite past high growth and catch-up 17

Figure 1.5. Services have lower productivity growth 18

Figure 1.6. Regulatory procedures are more complex than in the average OECD country 19

Figure 1.7. Licences and permits continue to pose a significant challenge in Romania 20

Figure 2.1. Structure of the Business Licensing Inventory 33

Figure 2.2. The Inventory includes 502 licences across key economic sectors 35

Figure 2.3. Application of "silence is consent" is limited 37

Figure 2.4. Most licences require between two and five administrative steps 38

Figure 2.5. Half of the licences can be requested online 38

Figure 2.6. Prior authorisations and certificates are required for about 2/5 of the licensing applications 39

Figure 2.7. Legal deadlines vary 40

Figure 2.8. Actual timelines are shorter than legal deadlines for over 100 licences 41

Figure 2.9. Most licensing procedures falls under a medium level of administrative complexity 44

Figure 3.1. Proposed institutional mechanism to implement the business licensing reform in Romania 70

Boxes 7

Box 1.1. Romania's Single Industrial Licence Law 21

Box 1.2. Functions of the CERB and ADR 24

Box 1.3. The National Interoperability Platform 26

Box 2.1. NACE and CAEN codes and updates 33

Box 2.2. Definition of commerce and services economic sectors 34

Box 2.3. Methodology to assess the procedural complexity of business licences 43

Box 3.1. Chile's Framework Law for Sectorial licensing 50

Box 3.2. Principles for setting administrative fees in New Zealand and Norway 52

Box 3.3. France's application of "silence is consent" 53

Box 3.4. Once-only principle and data exchange in Belgium and Italy 55

Box 3.5. Approaches to transparent licensing timelines in Denmark and the Netherlands 58

Box 3.6. Portugal's risk-based licensing approach to simplify licensing procedures for trade, services and catering activities 61

Box 3.7. Licensing simulators in OECD countries 63

Box 3.8. Digital information platforms for entrepreneurs in the Netherlands 64

Box 3.9. The management of the single point of contact in Italy 65

Box 3.10. The Portuguese single point of contact gov.pt and Entrepreneur's Desk 67

Box 3.11. The Dutch Policy Compass coordination model 70

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