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ORGANIZATIONAL VALUES AND COMMUNICATION AS LEVERS OF SUPPORT AND INTEGRATION OF THE EXPERTISE OF REMOTE WORKERS DURING THE COVID-19 CRISIS

Author(s): Andreia Gabriela Andrei,Magdalena Danilet,Adriana Zait,Ana Maria Andrei / Language(s): English / Publication Year: 0

Keywords: working from home during COVID-19 crisis; internal communication; organizational values and culture; KIBS; Romania;

The paper reports the results of a qualitative investigation conducted with participants holding full-time positions in knowledge-intensive business services (KIBS) operating in Romania. It discusses the impact of the first year of massive adoption of the remote work imposed by the ongoing COVID-19 crisis. Focusing on remote worker’s perceptions regarding their own efficiency, creativity, ability to cooperate, coordinate with others and integrate their expertise with the working group in fulfilling their daily tasks or delivering the projects, the study analyses the role of organizational values and transparent communication in supporting individuals to face the current difficulties and keeping the work-teams united. The paper brings to the fore the importance of the organizational culture. It shows that the shared values, the transparent, honest, and informal communication help KIBS to harness the expertise of the remote workers, supporting them to collaborate and perform well during the COVID-19 crisis.

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CERTAINTY OF TAX SYSTEM AND QUALITY OF TAX LAW

Author(s): Emil Bălan,Marilena Ene / Language(s): English / Publication Year: 0

Keywords: tax system; good governance; good administration; certainty principle; quality of law;

The principle of certainty has governed the tax system since the eighteenth century when Adam Smith in his "Wealth of Nations" mentioned the four basic rules applicable to the tax system. The same principles, including certainty, are resumed by the OECD in 2014. In this article is included an analysis of this principle from a theoretical point of view but also in terms of national jurisprudence in the field of tax regulations.Closely related to the principle of certainty, there is also the obligation of the legislator, both primary and secondary, to elaborate normative acts that follow the national requirements regarding the quality of the law. This aspect, of the quality of the law, is particularly important in tax matters since the tax legislation generate pecuniary obligations on the persons. Imperfect drafting of a normative act, found by the courts after a number of years, causes significant damage initially to the taxpayer, and subsequently, after the publication of the court decision, to the state budget forced to reimburse the unlawful tax.

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THE COVID-19 PANDEMIC AND THE FAMILY PHYSICIANS’ STRATEGIC ROLE

Author(s): Ana-Maria Bercu,Liliana Barbacariu / Language(s): English / Publication Year: 0

Keywords: COVID-19; family physicians; strategy; public health;

The COVID-19 pandemic reveals the role played by the doctors at all levels of health care system and the necessity to have a coherent public strategy to address the prevention, screening and preventive intervention, diagnosis, and intervention to fight against the disease. The role of family physicians increases in these pandemic times, they are becoming the interface between patients and health system.Using the literature approach, analysing the governmental rules established for fighting against SAR-CoV-2 disease, our investigation proposes to examine the strategic role played by the family physicians, also to underline the most appropriate practices that increase the quality of the medical act.

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THE IMPACT OF THE CAPITAL STRUCTURE ON THE ENTERPRISE VALUE AT DIFFERENT STAGES OF THE LIFE CYCLE. CASE OF INDUSTRIAL ENTERPRISES IN THE REPUBLIC OF MOLDOVA

Author(s): Iurie Besliu,Oleg Petelca,Veronica Carbuz / Language(s): English / Publication Year: 0

Keywords: capital structure; financing sources; the value of the company; risk indicators Republic of Moldova;

This paper summarizes the arguments and counter-arguments in the scientific discussion on the topic of the optimal structure of capital and the multitude of micro and macro-level factors that influences the decisions of the company's management regarding the choice of financing sources. The main purpose of the research is to determine how changing the structure of capital influences the value of the company. The quantitative models provide only an approximate assessment of the ratio between debts and equity. In the real situation, the structure of capital is formed under the influence of many factors, many of which are difficult to analyze. Among them can be the attractiveness of different sources of funding for company management, information asymmetry, the stage of the life cycle of the company, the need to maintain financial flexibility and questions of shareholder control over the enterprise, the influence of stakeholders. The proposed model for estimating the influence of the capital structure on the company's value is based on the establishment of risk indicators, which may be applicable in the conditions of the economy of the Republic of Moldova, namely risk-free rate of return, risk margin associated with indebtedness, cost of borrowed capital, risk premium, Beta Unlevered, rate of income tax, Beta Levered, cost of equity. The object of the research is joint-stock companies, the most representative for the industrial sector of the Republic of Moldova. The results received confirm that the proposed capital structure optimization model can be used in capital structure planning and assess the impact of capital structure decisions on maximizing the value of the enterprise.

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NON-FINANCIAL REPORTING, VECTOR FOR PROMOTING SUSTAINABLE DEVELOPMENT GOALS

Author(s): Margareta Bocancia,Daniela Gabriela COZMA / Language(s): English / Publication Year: 0

Keywords: Sustainable Development Goals; non-financial reporting; stakeholders;

The pandemic phenomenon COVID-19 has induced at the level of stakeholders additional financial and non-financial information needs from economic entities, which in turn are faced with the need to build confidence in the sustainability of their business. As forms of revealing sustainability under the effect of the pandemic, non-financial reports seem to have lost their relevance, becoming dependent on the reflection of past events only. Faced with the limitations of its non-financial reporting regulations, the European Commission intends to change the regulatory framework for sustainability reporting in Europe, considering the creation of a single reporting standard that includes the 17 Sustainable Development Goals set out in the 2030 Agenda of the United Nations (UN) as appropriate. In this context, through their study, the authors aim to identify the way in which, in anticipation, economic entities include in their reports the objectives of sustainable development. In our approach we use content analysis as a qualitative method combined with descriptive and inferential statistics as quantitative methods for the processing of non-financial reports.

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THE INFLUENCE OF THE COVID-19 PANDEMIC ON THE ECONOMIC ACTIVITES

Author(s): Gabriela Boldureanu,Teodora Roman,Ana-Maria Bercu,Daniel Boldureanu / Language(s): English / Publication Year: 0

Keywords: economic activities; COVID-19 pandemic; macroeconomic indicators; entrepreneurship;

The economic impact of the coronavirus crisis varies from one industrial sector to another and from one enterprise to another. It depends on several factors, including the ability to adapt to supply chain disruptions, the existence of stocks or dependence on just-in-time production processes. The impact of the COVID-19 pandemic on the activity of Romanian economic agents is, in fact, reflected in macroeconomic indicators: gross domestic product, inflation, unemployment, industrial production index, retail volume index and tourism sector-specific indices.Through a process of induction, deduction, critical and comparative interpretation of studies and reports prepared at national and international level, we investigate the influence of the COVID-19 pandemic on economic activities in Romania compared to the European Union to identify measures to relaunch economic activities, both nationally and internationally.

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A COMPLETED EURO ZONE– A DREAM OR A FUTURE REALITY?

Author(s): Ioana Buhac / Language(s): English / Publication Year: 0

Keywords: Euro; convergence criteria; monetary integration; Maastricht;

The Eurozone was conceived by the founders as the center of the European integration process, bringing many economic benefits to trade, eliminating currency risk, transaction costs, and avoiding shocks in financial markets. But with these benefits, there are risks, often underestimated, but highlighted only after the financial crisis. A decision on accession must therefore be carefully examined.Inadequate mechanisms and policies are closely linked to the Eurozone crisis. The desire for the Euro to be a force with relentless action for real convergence has proved too optimistic. Weak domestic institutions, insufficient productivity growth, and structural rigidities are some of the reasons why less developed countries cannot have real sustainable convergence provided by the Eurozone.During the crisis, structural and institutional weaknesses of some EMU countries, including Greece, Spain and Portugal, were highlighted. The same states that in the post- crisis period registered high rates of economic growth, but which paradoxically with the onset of the crisis faced significant falls in real GDP / capita. Thus, the competitiveness gaps between Member States illustrated relevant imbalances in the Eurozone.The need for real sustainable convergence, based on solid and non-cyclical foundations, is one of the most significant issues to be considered by every state wishing to be part of the Eurozone.The report of the 5 presidents talks about "a sequence of short-term and longer-term steps" that will help the political union. In the short term, the main priority is to regain confidence in the European project so that citizens can believe in solving the problems related to migration, the Schengen area, cybersecurity, the de-escalation of relations with Turkey, Syria, Ukraine, and the Transatlantic Partnership Trade and Investment. In the longer term, the crisis has underlined the fact that EMU cannot resist without deeper integration. The European project needs much better political coordination and policies. Restoring confidence and renewing solidarity for the continuity of the European Project are preconditions that require special attention from politicians in the event of another crisis. After all these challenges there is one more question: the countries outside the Eurozone are ready to make the zone complete?

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CROSS-BORDER BANKING REGULATIONS IN THE EVENT OF CRISIS

Author(s): Aliona Cara-Rusnac / Language(s): English / Publication Year: 0

Keywords: financial crisis; Greek crisis; banking activity; health crisis; pandemic; Moldovan banking activity;

The article will analyze the impact of different waves of crisis on the Moldovan banking activity. There will be presented the Moldovan banking activity and its resistance to the crisis during different waves of crisis: big world crisis 2007-2009, Moldovan banking crisis 2014, the Greek sovereign debt crisis in the spring of 2010 and finally health crisis (2020-present). In conclusion, the author will come up with recommendations referring mitigating regulatory risks of the banking activity in particular emphasizing its relations to the customers, regarding improving the regulatory banking framework during crisis based on the best strategies implemented by the developed countries. It will be argued that there is a need to tackle solutions to banks problems at the European, International level that the national level, and will be considered the role of the International, European and national monitoring institutions to provide appropriate solutions and if necessary to adopt restrictions. The crisis periods have shown that past and/or current legislative framework is inadequate to face the financial and/or health crisis, also the banking crisis that took place in Moldova and 2014 and the collapse of three banks showed the gaps in the national legislation and weak cross border cooperation in investigating financial crimes. Another issue is that the banks played a crucial role during crisis in supporting and/or no supporting client as the first impact of the crisis is the hit on the economy and in particular on the small and medium enterprises, though it is in state’s duty to support small and medium enterprises, by subventions, cooperation with banks to wave penalties and/or interests, pay rents and other facilities. Currently countries are struggling with health crisis, banks are experiencing clients’ resistance and impossibility in paying the debts, in these case the banks had to change their strategies this is particularly the case for cross- border banks, where many assets from a variety of countries may be held by founders from different countries, thus applying different jurisdiction. By April 2020, about half of the world’s population was under lockdown, the banks have switched from classic to electronic payments.

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UNPACKING THE CONCEPT OF SOCIETAL RESILIENCE IN THE EU’S POLICY TOWARDS ITS EASTERN NEIGHBOURHOOD

Author(s): Anatolie Cărbune,Roxana-Mihaela Chiriac / Language(s): English / Publication Year: 0

Keywords: societal resilience; Eastern Neighbourhood; local ownership;

The main aim of this paper is to analyse the conceptualisation of ‘societal resilience’ within European Neighbourhood Policy (ENP) since its review in 2015. In particular, the paper seeks to identify the main components which underpin the concept of societal resilience. The research is based on content analysis of the main EU official documents, since the publication of the ENP review (2015) and until the publication of the Joint Communication on Eastern Partnership Policy on Reinforcing Resilience (2020). The research shows that the need for dialogue and cooperation appear as the most dominant ideas as part of the broader objective of building societal resilience. As such, it is argued that – at least conceptually – societal resilience clearly acts as a bridge between international dimension (EU, Union, Member States) and the societal one (local actors, citizens). The concept of societal resilience is based on a multitude of components, including resilience drivers, risks, opportunities and actors involved; however, dialogue seems to be the most common component.

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THE IMPACT OF COVID-19 ON SMEs ECONOMIC AND ENTREPRENEURIAL OUTCOMES AND EXPECTATIONS. CASE OF ROMANIA AND UNITED KINGDOM

Author(s): Elena Cigu Rusu,Denis Hyams-Ssekasi,Anca Florentina Vatamanu (Gavriluță) / Language(s): English / Publication Year: 0

Keywords: entrepreneurship; pandemic crisis; SME; recession;

In the context of the COVID-19 pandemic, all countries are facing an inevitable economic recession where SMEs have been severely affected. This paper focuses on the impact of COVID-19 on SMEs economic outcomes and expectations based on the context of Romania and United Kingdom. Firstly, the paper will present economic strategies and model in recession times from the perspective of the literature. The second objective, based on descriptive analysis methodology, is to analyze the status of small and medium enterprises (SMEs) in Romania and United Kingdom.

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LOCAL FISCAL SYSTEMS AND SOCIAL JUSTICE ACROSS EUROPEAN UNION COUNTRIES

Author(s): Lenuta Cojocariu,Arina-Emilia Gogu,Florin Oprea / Language(s): English / Publication Year: 0

Keywords: direct taxation; indirect taxation; local budgets; social justice; income distribution;

In the context of fiscal federalism, local authorities have expanded their administrative powers, being nowadays involved in the efforts of macroeconomic stabilisation or ensuring a better income distribution within society. Local budgets have become in this context important tools of influencing progress in a society at both the microeconomic and macroeconomic levels. In this paper, we analyse particularly the potential connection between local fiscal systems and social equity, measured by income distribution and Social Justice Index, on a comparative approach between two groups of countries in Europe: North-West as developed countries and South-East as developing countries. As expected, strong local fiscal systems are associated with low level of social inequity in North-West countries, while weak local fiscal systems are associated with high levels of social inequity in South-East countries, showing that significant increases of the share of indirect taxes promote equity imbalances between various social categories within a society. Based on these findings, we formulated some concluding remarks as useful recommendations for improving the structure of local fiscal systems and thus, enhancing the role of local budgets in stimulating the progress of a society.

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PROTECTION OF CONSUMERS’ INTERESTS IN THE CONTEXT OF UNFAIR COMPETITION

Author(s): Violeta Cojocaru,Iulian MORARU / Language(s): English / Publication Year: 0

Keywords: competition; unfair competition; objective; consumer; consumer protection;

Consumer protection is one of the fundamental aims and objectives of competition law. Moreover, according to the provisions of art. 1 para. (2) of the Law no. 183 of 11.07.2012 on competition, the purpose of the normative act in question consists in regulating the relations related to the protection, maintenance and stimulation of competition in order to promote the legitimate interests of consumers. Contextually, it is worth mentioning the fact that in the definition of the term “competition” in the text of art. 4 in the Law on competition, there also prefigures the term “consumer”, or competition is defined as an economic rivalry, existing or potential, between two or more independent undertakings on a relevant market, when their actions effectively limit the possibilities of each of them to unilaterally influence the general conditions of circulation of the products on the respective market, stimulates the technical-scientific progress and the increase of the well- being of the consumers. At the same time, in accordance with the provisions of art. 3 para. (2) of the same normative act, “It is forbidden for companies to exercise their rights in order to restrict competition and harm the legitimate interests of the consumer”. One of the competition forms is unfair competition, which involves any action taken by companies in the competition process, which is contrary to honest practices in economic activity. In that regard, the question that arises is whether the protection of consumers in unfair competition is a direct objective or whether that protection is subsequently achieved as a result of the protection of undertakings whose legitimate interests are harmed by unfair competitors in the course of their economic activity. At the same time, regardless of the identified answer, it is also interesting how the rights of consumers affected by unfair competition actions can be protected.

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TAXABLE PERSONS IN VAT MATTERS: THE VAT GROUP BETWEEN CONSOLIDATION AND AUTONOMY

Author(s): Ioana Maria Costea,Despina-Martha Ilucă / Language(s): English / Publication Year: 0

Keywords: VAT group; taxable person; VAT Directive; financial, economic and organizational link;

The VAT Directive provides a flexible regulatory framework for the treatment as single taxable persons of any persons who, while legally independent, are closely bound to one another by financial, economic and organizational links. Therefore, formal or informal groups can become single taxable persons, as long as the criterion of a close bond between composing entities is proven. The present study aims at analyzing the concept of “VAT group” by putting under the magnifying glass the financial, economic or organizational link and the flexibility of this binder. The issue becomes relevant especially when it comes to operations taking place within the group, reason for which our study also analyzes the VAT regime applicable to these operations.

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DETERMINANTS OF R&D INVESTMENT IN PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES

Author(s): Mihaela Curea,Marilena Mironiuc / Language(s): English / Publication Year: 0

Keywords: R&D expenditures; R&D investment; innovation; pharmaceutical industry; biotechnology;

Corporate research and development (R&D) investment is typically portrayed as the main engine for long-term economic growth. In this context, it comes as no surprise that academic interest in the driving factors of R&D is on the rise. However, the results remain unclear. This paper empirically scrutinizes some of the potential determinants of R&D behaviour in European pharmaceutical and biotechnology companies. We focus on the internal factors that may shape R&D decisions, namely firm size, profitability, leverage and current loss. In addition, we seek to disentangle the puzzling relation between foreign direct investment (FDI) inflows and R&D investment. The analysis is based on a longitudinal dataset comprising European listed firms over a time span of 10 years (2010- 2019). Secondary data concerning FDI and firm-level variables were extracted from the World Development Indicators (WDI) database and Refinitiv Eikon database. We employ a fixed effects model (FEM) where R&D investment is seen as a function of several firm- specific factors and FDI. Collectively, our findings indicate that firm size, leverage, current loss and profitability affect the R&D decision of pharmaceutical and biotechnology companies. In line with our expectations, profitability and leverage are negatively associated with R&D expenditures. Evidence also shows that large companies and loss companies are more prone to undertake R&D activities as such projects are risky, and their impact is time-lagged. Regarding FDI, we fail to provide a clear picture since no significant influence on R&D is found. Various robustness checks lend further support to our findings. As pharmaceutical and biotechnology firms are traditionally replete with R&D, our study can complement the extant literature and deepen our understanding of the factors that are likely to drive R&D. Therefore, this research could be a useful aid for decision-makers at both national and company level.

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EUROPEAN GUIDELINES FOR IMPROVING THE EFFICIENCY OF THE FINANCIAL SERVICES MARKET OF UKRAINE

Author(s): Mykola MYKOLAICHUK,Tetiana DROZDOVA / Language(s): English / Publication Year: 0

Keywords: financial services; efficiency; evaluation criteria; government regulation;

The efficiency of the country's financial services market significantly affects the development and competitiveness of its economy. This article has determined that the low level of financial markets development harms Ukraine's position in countries' overall competitiveness rating.Ukraine has chosen integration into the European community as the primary vector of its development. For achieving this task, it is necessary to bring the achievements in socio- economic development closer to the European level and fulfil the conditions for implementing the Association Agreement with the EU, which entered into force in 2017. For the purpose to determine the directions of improving the efficiency of the financial services market of Ukraine, a comparative description of the structure and quality characteristics of the financial services market of the most developed countries, European countries and Ukraine has made. Based on a systematic approach to assessing the attributes of socio-economic development of Ukraine, favourable conditions for the formation of various models of the financial market, the desire for European integration, the most acceptable model was selected and identified priority areas for specific financial systems.Evaluation criteria and strategic guidelines for improving various financial services' efficiency to European countries' norms have identified. As quantitative benchmarks that will characterize the desired achievements in the medium and long term selected a score of financial markets in the overall ranking of global competitiveness. In the next five years, the benchmarks may be the neighbouring EU countries' indicators (Romania, Hungary, Slovak Republic, and Poland). In the long run, they can be a benchmark for Germany, which ranks high in the competitiveness rankings.

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PUBLIC SPENDING ON LABOR MARKET POLICIES AND UNEMPLOYMENT IN THE EUROPEAN UNION. A GENDER ANALYSIS

Author(s): Adriana Nastas,Irina Bilan / Language(s): English / Publication Year: 0

Keywords: unemployment rate; female unemployment rate; male unemployment rate; ALMPs; PLMPs; European Union countries;

All around the world, governments are implementing policies designed to fight unemployment and diminish its negative economic and social effects. While passive labor market policies (PLMPs) are aimed at providing unemployed individuals with income support during their search for a job, active measures (ALMPs) aim to increase employment opportunities and cut down unemployment. Our paper seeks to investigate the impact of public expenditure with these policies on unemployment rates in the European Union countries, during 2006-2018. In addition, we want to assess whether there are substantial differences in their effects on unemployment rates among women and men. The results show that higher unemployment benefits are detrimental to employment because unemployed people lessen their efforts to search for a job, and active measures may be an efficient tool in reducing unemployment, although further analysis is needed in this respect. Moreover, we found evidence for important differences among the two genders, especially regarding the passive labor market measures. The side-effects of generous unemployment benefits on unemployment are found to be more important among men compared to women.

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FOCUS OF THE NATIONAL PLAN FOR RECOVERY AND RESILIENCE (NPRR) ON DIGITALIZATION: FINANCIAL EFFORT AND EXPECTED RESULTS

Author(s): Vasile Nita / Language(s): English / Publication Year: 0

Keywords: recovery and resilience; public services; digitalization;

Today, digital transformation has become a key element of human life in all areas. Public administration has been competing with other systems to win specific competitive advantages due to globalization, pressure from citizens and digitalization.According to Digital Economy and Society Index (DESI-2020), which measures digital competitiveness using five subcomponents, Romania ranks 26 out of 27 EU member states, mainly due to insufficient development of electronic public services and a limited range of such services.Considering the recently discovered setbacks regarding NPRR, the following measures should be implemented: governmental cloud and interconnected digital systems in public administration, electronic signature and identity, promotion of ICT investments with high added value; Digitalization of education; Broadband and 5G.This study discusses the importance of accelerating the digitalization measures, and the continuation of budget allocations for a wide range of purposes. To conduct the study, we have examined the most relevant articles in the field, the content of NPRR itself, the financial provisions included in the multiannual plan for the 2021-2027 period (CFM), as well as the reports published on the websites of important national, European, and international public institutions.

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GREENHOUSE GAS EMISSION CERTIFICATES - FINANCIAL INSTRUMENTS FOR IMPLEMENTING ENVIRONMENTAL POLICIES IN ROMANIA

Author(s): Cristina Oneţ / Language(s): English / Publication Year: 0

Keywords: greenhouse; gas emissions; certificates; carbon credit;

This paper aims to present and analyse how Romania succeeds in implementing a flexible and innovative European legislation on green finance, designed to support one of the most challenging environmental objectives, namely, reducing greenhouse gas emissions, until their complete elimination.The EU Emissions Trading System (EU ETS) covers emissions from around 11000 power plants and factories, as well as from air transport within and between participating countries.Romania has transposed the European legislation in this matter by adopting GEO no. 115/2011 regarding institutional framework and Governmental authorization, through Ministry of Public Finance, to auction greenhouse gas emission certificates attributed to Romania at the level of the European Union and GD no. 780/2006 regarding the establishment of the greenhouse gas emission allowance trading scheme, with subsequent amendments.Romania has opted for the solution that the amounts resulting from these financial operations be distributed to the treasury accounts of certain public authorities with competences in promoting environmental policies, following that they initiate and financially support various projects to reduce pollution by greenhouse gas emissions.

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FISCAL IMPLICATION OF POPULATION AGEING AND SOCIAL SECTOR EXPENDITURE IN ROMANIA

Author(s): Mihaela Onofrei,Anca Florentina Vatamanu (Gavriluță),Elena Cigu Rusu,Gigel Paraschiv / Language(s): English / Publication Year: 0

Keywords: public finance sustainability; healthcare expenditure; population ageing; sources of vulnerabilities;

The entire context of economic turmoil has significantly overload public finances, increased deficits, and debt levels but most important, highlighted the value of understanding the sources of vulnerabilities that can lead to a systemic financial crisis. Even if the early identification of the sources of vulnerability is extremely important because this would allow the introduction of proactive policies, with direct implications on the consolidation of a sustainable way to act, the emphasis falls on the long-term implications, with presumption, on two primary variables: the demographic one (which takes into account the aging of the population) and globalization, which through the international competition, will increase mobility and exposure to external shocks. The research aimed to analysing the relationship between public finance challenges and the costs of population ageing (measured by healthcare expenditure) and invokes an element of novelty related to the international literature, more exactly, the importance of the mechanisms of management and control of the fiscal risk. Based on retrospective and prospective analyses, the study attempts to suggest mechanisms of management and control capable to manage some major concerns for fiscal sustainability, such as population ageing and the growing healthcare expenditure. The usefulness of the results concerns both the institutional levels and the decision-makers, stressing the priority ofconsolidating the fiscal responsibility goals and the importance to follow policies that safeguard the well-being of nation.The entire context of economic turmoil has significantly overload public finances, increased deficits, and debt levels but most important, highlighted the value of understanding the sources of vulnerabilities that can lead to a systemic financial crisis. Even if the early identification of the sources of vulnerability is extremely important because this would allow the introduction of proactive policies, with direct implications on the consolidation of a sustainable way to act, the emphasis falls on the long-term implications, with presumption, on two primary variables: the demographic one (which takes into account the aging of the population) and globalization, which through the international competition, will increase mobility and exposure to external shocks. The research aimed to analysing the relationship between public finance challenges and the costs of population ageing (measured by healthcare expenditure) and invokes an element of novelty related to the international literature, more exactly, the importance of the mechanisms of management and control of the fiscal risk. Based on retrospective and prospective analyses, the study attempts to suggest mechanisms of management and control capable to manage some major concerns for fiscal sustainability, such as population ageing and the growing healthcare expenditure. The usefulness of the results concerns both the institutional levels and the decision-makers, stressing the priority of consolidating the fiscal responsibility goals and the importance to follow policies that safeguard the well-being of nation.

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THE IMPACT OF COVID19 PANDEMIC ON THE SUSTAINABILITY OF SMALL AND MEDIUM ENTREPRISES

Author(s): Otilia Oprea / Language(s): English / Publication Year: 0

Keywords: pandemic; sustainability; SMEs; crisis; economy;

The coronavirus crisis has affected Member States in a sudden and dramatic way, with a potentially major impact on their societies and economies. This has led to a sharp decline in economic activity, which may be exacerbated by liquidity constraints as companies struggle to pay their suppliers and employees. The purpose of this paper is to investigate the impact of Covid19 pandemic on the sustainability of the SMEs. . We used fixed effects methodology for times series data for the EU 28 countries during 2018-2020. We find that the main factors through which the pandemic contribute significantly and positively to SMEs are per capita income financial transactions and value added, and the variables which has a significant but negative influence are the number of Covid19 cases and labor productivity.

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