The anger in Romania over Austria’s veto on the opening of Schengen could now also have painful economic consequences. Not only are economic experts warning about the high costs, but the call for boycotts by local companies in Romania is getting louder.
In particular, the Romanian Minister of Tourism, Daniel Cadariu, denounced the decision of the Austrian Minister of the Interior, Gerhard Karner (ÖVP). He encouraged his compatriots to avoid Austrian ski resorts. But not only that: at the same time he also reminded that banks from Austria would do good business in Romania.
Lists of Austrian companies are circulating
With his appeal, the minister apparently struck a chord in his country. Numerous images are now circulating on social networks featuring Austrian companies doing business in Romania. “Let’s do something good and send these companies back to their mother in the Schengen area! I’m not buying from them anymore,” raged journalist Alex Badea under one such statement.
Well-known entrepreneur stops cooperation
One of the country’s best-known businessmen, Dimitrie Muscă, took a similar stance shortly after Austria’s decision: “I ordered my companies to close their accounts with Austrian banks,” he told several Romanian media outlets.
“We have also decided to stop working with OMV, even though we have over 7,000 hectares of agricultural land and have very high diesel consumption with tens of thousands of pigs. I will never buy anything from Austria again!” said Muscă, who advised his employees to do the same.
Austria second largest investor in Romania
The companies involved understand that: Harald Oberhofer, economist at the Austrian Institute for Economic Research (Wifo), pointed out the cost of this decision. With a volume of EUR 10 billion, Austria is the second largest investor in Romania and is particularly well represented in Romania in the banking, insurance, steel and energy sectors.
Exports amounted to 2 billion euros in the first half of the year. Oberhofer explained that sticking to the veto decision for a longer period of time could be costly for Austria.
Companies hope for a quick solution
The prospect of Romania’s accession to the Schengen area also receives “full support” from Raiffeisen. “We regret this situation, but we are confident that the actors involved will be able to quickly clarify open questions in a reliable, fact-based and result-oriented manner,” the Wiener Zeitung quoted the bank as saying in an online report on Friday. evening.
UNIQA and Strabag also emphasized to the newspaper their hopes for a quick solution and progress in European integration. According to the Wiener Zeitung, OMV said: “We welcome any measure that facilitates cooperation and exchange between the teams in Austria and Romania.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
