The Romanian construction industry may reach this year a minimum value of €8.8 billion in the worst case scenario, according to the officials of the local industry association - Patronatul Societatilor de Constructii (PSC). The representatives of the construction companies consider that, in this case, there will be a reduction of up to 5% of the €9.3 billion recorded in 2011. Thus, despite the fact that in 2012 a similar level of market to the one reported last year was expected, the local political changes as well as the deepening of the sovereign debt crisis in the eurozone would most likely result into a further decrease of the workload. The difficult situation that characterized the Romanian construction industry was recently confirmed by the repeated investment budget cuts - both in the public and private sector -, and also by the obstruction of the execution of large local projects and culminated with the decline in GDP reported by the authorities for the third quarter of the current year. In this difficult context, the local contractors are not ready for competition, especially as it is well-known that the Romanian government actually represents the only major investor. From another point of view, according to the statements made by officials of the relevant authorities involved in investment projects in road and rail infrastructure, the Romanian government's debt to the contractors for the completed works sums up to €287 million. The authorities also said that the payments would be made according to the budgetary constraints in 2012 - 2013. Of these arrears, the equivalent budget surplus will be paid until the end of 2012, without exceeding the deficit limit of 3% (about €44 million). It is also important to mention that the local contractors also have to pay debts to the state budget summing almost €31 million, according to the National Agency for Fiscal Administration (ANAF). For further information and a detailed analysis of the current Agenda Constructiilor issue, click here!