CONTEMPORARY ECONOMY JOURNAL

5-25

Authors: Rodica PERCIUN, Viorica POPA

This paper aims to provide a complete picture of EU experience in the field of microfinance. This sector has been actively developing in EU in recent years, after the increased attention and interest from the public authorities. Thus, the purpose of this research is to describe the microfinance model characteristic for EU justifies the correlation between microfinance and small and medium-sized enterprises (SMEs). The paper defines microcredit and presents its current status in the EU. Following this, the author summarizes the main microfinance institutions in selected CEE countries. In the final section, the author shares his professional recommendations and puts forward a directive on the hallmarks of good micro financing.

38-50

Authors: Nicolae GRĂDINARU

The mortgage lender may petition the court for enforceability the mortgage securities by selling the mortgaged movable asset. At the request for the approval there will be attached documents proving the existence mortgages and of the mortgage securities along with proof of drawing up the mortgage. The court will consider the existence of debt, and of the mortgage legally executed and will approve the sale, summoning the interested parties. Application for a declaration of enforceability of the mortgage securities by selling the mortgaged movable asset interrupt the prescription right to obtain enforcement. The mortgage lender can sell mortgaged movable property in the state in which they are, or after taking commercially reasonable measures to their recovery. The lender may sell the mortgaged movable property by public auction or by private treaty through one or more contracts, in bulk or separately in any time or place, on reasonable commercial terms. The creditor may take for itself the mortgaged asset to settle the claim, unless the law provides otherwise, the settler consents and those mentioned, do not oppose. The consent of the settlor to take over the property by the creditor in the account of the claim must be expressed in writing and be subsequently non-performance. The lender who wants to take over the mortgaged asset to settle his claim, will score in the archive, a notice of taking in the account of the claim and notify the persons referred to, this offer.

75-83

Authors: Daniel-Petru VÂRTEIU

European funds are an important source of financing both the private and public institutions that make capital investments of national interest. After accessing some European projects, auditing is mandatory and is performed by auditors authorized by the Chamber of Financial Auditors of Romania. The reference framework which underpins the auditing of European projects is ISRS 4400 "Missions on agreed upon procedures regarding financial information" and The Code of Ethics emitted by the International Federation of Accountants. The Code of Ethics presents the fundamental ethical principles that a professional must comply when offering his services and these are: integrity, objectivity, professional competence, confidentiality, professional behavior.

105-116

Authors: Camelia ISTRATE, Narcisa-Liliana LEICIU

Education is a productive investment from economic and moral point of view. In many developing countries education is funded and provided mainly by the state, the expansion of education depending on the size of fiscal resources. The funding reform of education, of tuition, represents a component of education reform in general, on one hand, and the reform of financial systems and me chanisms of funding, on the other hand. In this regard, education funding reform implies a coherent and consistent approach to human capital formation needs and to direct financial implications of beneficiaries and users of education, detaching the following aspects:the individual invests in himself, in his education and in his training, he decides if he uses or not the knowledge, the compentences and the abilities obtained through education; the individual can not be forced to be educated or trained in a particular way, or forced to use what he learned. Because individuals and their families often don’t have money to finance their education or have difficultions in obtaining loans from banks, the educational institutions, of education, are currently funded, mainly, by the state.

133-162

Authors: Irina NASALCIUC

Nowadays, humanity is in a position to choose carefully every step it makes in order to ensure economic development without compromising the welfare of future generations who will need a social and ecological climate as favorable it could be. On the other hand, the conventional energy production is achieved taking the risks of the Earth overheating and its aggregate economic consequences, actually this climatic changes already appear in a more and more aggressive way, including on global economies. Over the past few years international organizations such as OECD, the IMF, the IEA, the World Bank are focusing their attention on the fossil fuel subsidies impacts over the energy production and consumption, quantifying the economic and social impacts of fossil fuel reform. The reason this study had to be done is the disadvantageous position of renewable energy industry compared with the fossil fuel’s industry situation which lies actually in the adopted subsidy strategy and the lack of measures for internalizing externalities on the sector, which are considered by IMF also a type of fossil fuel subsidy. So, this study presents an updated overlook on the fossil fuel externality problem, revises the identified literature linked to the”externality” notion, outlines the identified trends and polices of internalizing the fossil fuels externalities, and tries to review the estimations of the potential costs of the global warming as a consequence of too high social costs of the fossil fuel installed technologies. In this purpose there are on their way of implementation different systemic methods of research, including scientific abstraction, deduction, analysis and synthesis and quantitative analysis in order to outline the current situation of fossil fuel externality problem and its potential impact over the economic welfare.

5-17

Authors: Gica Gherghina CULIŢĂ

Taxation was and continues to be the chapter to which the European Union can’t find any solution and real measures for sustaining the integration process. Fiscality’s level, very different to the 28 fellow states, can’t reconcile the various requests from the fellow states. In this piece of work we will analyze the European Union fiscality level based on the recent data given at the European level. The economical worldwide crisis seems endless for the majority of the European Union states, for this reason, we propose to analyze how the fiscal changes from the past years in Romania contributed to economic recovery and what are the perspectives in this domain.

32-35

Authors: Elena PĂDUREAN

By the establishment of the Euro monetary area, with two large pillars, the European Central Bank and the single currency, for the first time in history “a central European producer of symbol-currency appears, which not only delivers the state from the budget limitations imposed by the former regime (European Monetary System), but also opens for it and its partisans new ways for enrichment, at the expense of the other citizens. This is the true purpose of ECB and this is the intention of its creators” [Hulsmann].

50-69

Authors: Cornelia Serena PAȘCA

There is vast literature regarding the grounds of remittance. The best known and most often quoted article on the theme belongs to Lucas and Stark, who divided the grounds pursuant to which people remit money, into altruistic and personal grounds. At microeconomic level, the main beneficiaries of remittance are the remitters themselves and their close ones and, at macroeconomic level, the benefits are substantiated in the increase of domestic consumption, poverty decrease, recovery from macroeconomic shock or imbalance, support of the payment balance. The behavior of migrants who remit money to their country of origin is influenced by factors such as gender, age, educational level, civil status, family position, period of stay in the foreign country and the opportunities therein. The are about 3 million Romanians working abroad and remittance represents an economic advantage for the country, as it stimulates consumption and investments and improves society’s welfare. Remittance stands for an essential source of external funding for developing countries. During 2003 – 2013, Romanians abroad sent home over 54 billion Euro and the peak of the amounts sent by Romanian workers was reached in 2008 (7,765 billion Euro). Following economic crisis, remittance was drastically decreased by almost a half during the following year.

91-109

Authors: Dorina CLICHICI

The article is a continuation of the research initiated by the author on corporate governance challenges for the stability of the banking system and destabilizing effects of weak corporate governance structures within banking institutions in the Republic of Moldova. The article has the purpose to identify weaknesses in corporate governance arrangements in the current banking system and presents the main recommendations for eliminating these deficiencies. In order to achieve this goal was performed an analysis of the legislation that regulates the banking system and of the corporate governance code currently in place. Despite some progress on implementing recommendations of the International Monetary Fund and the reported satisfactory performance of banks, the following deficiencies of corporate governance in the banking system were identified: opaque shareholders’ structures and the issue of ultimate beneficial owners disclosure; deficient quality of bank boards; the current corporate governance code does not consider essential elements recommended by the Basel Committee; the lack of a consistent concept on corporate governance in the banking system in Moldova aligned with Basel Committee's recommendations.

128-136

Authors: Simona-Silvana MĂRGINEAN

Loyalty programs are designed to change the way customers interact with companies in terms of purchasing value, retention and repetition. The monetary perspective lays at the foundation of every loyalty system, designated to measure the transactional side of the client’s loyalty. However, the serious decline in retention rates and low customer commitment due to lack of relevance and value pushes today’s loyalty marketing into anachronism. Our approach to loyalty programs will analyze the emotional side of customer loyalty, in today’s Internet driven social platforms environment, which is set to generate a switch in paradigm. Customer loyalty models need to focus on brand values and interaction, on meaningful brand experiences worth sharing. Loyalty metrics should focus on creating and inspiring more valuable customers, willing to share their seamless experiences with others. We will analyze the impact of transactional operated loyalty programs against loyalty programs built upon customer expectations, inin order to identify meaningful loyalty models generating brand attachment in tomorrow’s economic environment. Our focus will be on assimilating the loyalty performance model into a new transparent loyalty paradigm, built upon brand values, customer insight, innovative contribution to brand growth and ethics, as opposed to bargain hunting, promotions and retention metrics.

5-20

Authors: Mioara BORZA

The competitiveness assessment of business represent a preoccupation of theorists and, equally, of global economic area representatives. Also, the concern to identify the role of sustainability concept in business is dynamic. However, we note that the approach of sustainability theme is slipped, often, to the ecology sphere, the economic and social issues remaining in background. We consider that the persistence of confusion has been maintained by the lack of an indicators system for sustainable development, combined in an assembly with real utility. For this purpose, this paper will discuss in practical perspective about the sustainability in business area, analysed in terms of complex competitiveness. The competitiveness studies conducted until now, have involved the assessments based on socio-economic indicators, on the false assumption that the economic activity is able to distribute equable in territory the benefits of growth. Often, was ignored the importance of socio-cultural relations between economic actors, able to lead to increased competitiveness. The Index of Regional Competitiveness of European Union measures the competitiveness of companies and regions in correlation with Index of life quality; the sustainability dashboard sustain the importance of sustainability approach in terms of business competitiveness, the notions of competitiveness and sustainability becoming complementary and interdependent.

26-37

Authors: Dorina LUȚĂ, Laura PĂNOIU

EU Member State normalizers have been required to bring into force the provisions of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 regarding annual financial statements, consolidated financial statements and related reports of certain types of companies. In this respect, in early 2015, Ordinance of the Public Finance Ministry (OPFM) no.1802/2014 came into force in Romania for the approval of accounting regulations on annual individual and consolidated financial statements. The main goals of the Directive aim at: lowering administrative costs, improving the comparability of annual financial statements at EU level, increasing the transparency on payments made to governments by entities operating in the extractive industry or in the primary forest exploitation sector. With such goals in mind, this paper shows how Ordinance of the Public Finance Ministry no.1802/2014 has taken the requirements of Directive 2013/34/EU of the European Parliament and of the Council and has adjusted them to the peculiarities of the business and financial environment in Romania.

48-58

Authors: Ecaterina GARABAJII

Actuality of article consists in performing complex analysis of state social insurance budget for the years 2005-2014. The aim of this work is to elucidate the real situation in terms of financing social protection system which is part of the national public budget of Republic of Moldova and determination of its interdependence with demographic trends, namely aging.

73-77

Authors: Elena RUSU (CIGU), Florin OPREA

One of the great challenges that local authorities have to face in the current period of time is climate change and that environmental protection, the responsibility of creation or strengthening green cities appearing in the forefront. In this context, the success of policies based on regulations can be sustained and substantially enhanced by appropriate use of local fiscal instruments such as taxes, fees or expenditures. From this point of view, our paper suggests some alternative design, implementation and use of these fiscal tools so that they can manifest realistic as active levers to influence the activities and behaviors of actors involved to develop and strengthen green cities.

85-97

Authors: Gabriela-Cornelia PICIU

This article considers the role of circular business models in efficient and sustainable growth. Circular economy is a fundamental change in the way products are designed, manufactured, sold and consumed. The company who assimilates circular economy principles must adopt new business models, especially this means the transition from selling products to selling services. In these business models, companies retain property rights on products. Thus, companies have an incentive to reduce environmental impact through design for prolonging the life of the product.Because reuse is taken for a circular economy, the role of the consumer is replaced by the user. For companies, this change requires a different way of thinking about implicit contract with clients. In a linear economy based on purchasing and consumption, the goal is to sell the product. In a circular economy, the aspiration would be to rent it to ensure that its materials were returned for reuse. Where products are to be sold, would create incentives for companies to ensure their return and reuse. Leasing models are a rarity in many industries, although it would benefit both customers and companies from these models.

108-117

Authors: Raluca-Viorica LIXANDRU

Tax evasion is the result of an imperfect legislation, which has not been well assimilated. One of the causes of tax evasion is excessive taxation. The emergence of tax evasion arises from the simple game of interest. Given the context of the current mentality, committing an act of tax evasion is a proof of ability rather than dishonesty. The anti-taxation reaction in our country came together with the democratisation of public finances. The people who have highly sided with this direction were the ones who before the introduction of the tax reforms were exempt or enjoyed the privileges regarding their tax obligations. Evading the tax obligations can be achieved through a variety of means, the most important ones being the illicit processes and the exploitation of loopholes.

5-21

Authors: Emil DINGA

The paper aims to find the logical predicates of sufficiency which could deliver a general definition of the fiscal sustainability. To this end, firstly the concept of optimality (in its relation with the extreme values of a system) is discussed and clarified. Then, these results are applied to the fiscal concept in order to find the concept of fiscal optimality. Finally, the paper discusses the minimal list of the fiscal sustainability sufficient predicates, so to get the logical definition of the fiscal sustainability.

35-59

Authors: Camelia-Cătălina MIHALCIUC

In a competitive market environment, the activity of conducting transactions of sale involves operating with discounts, which may be granted by suppliers to customers, these reductions quantify the existing confidence between the two partners, the business volume, the quality of goods. The literature in the field and the business practice operates with two types of discounts: trade discounts and financial discounts. Given that, often in practice is not always a clear distinction between the two categories of discounts, since the invoices are often entitled with “discounts”, the main objective of the work focuses on delineating the two categories of discounts, highlighting the applicable accounting treatment according to the Romanian accounting regulations in force (Order no. 1802/2014, valid from 1 January 2015 and Order no. 4160 of 31 December 2015 amending and supplementing certain accounting regulations valid from January 12, 2016). Thus, taking into account these regulations, in doing this work will be presented in detail issues concerning amendments and clarifications on the procedures for registration of price discounts by applying the accounting treatment prescribed.

82-95

Authors: Camelia BĂLTĂREŢU

In the literature and in practice there is no unanimity regarding the definition and the measurement of seigniorage revenue. Usually, the seigniorage is seen as an important source of government finance without levying conventional taxes. In this paper, the author presents some main conceptual aspects of seigniorage that have been used in the literature, trying to delineate these terms : monetary seigniorage, fiscal seigniorage, inflation tax, opportunity cost of holding money.

113-126

Authors: Laurenţia Elena SCURTU

The purpose of this paper is to present the main factors that offer to the management of a company the possibility of improving its administration activity, factors identified during a period of individual study, theoretical and empirical research and summarized within this article. In this regard, through the present paper, I underlined the role of knowledge (especially of the tacit ones) in business organizations and I argued their importance for successful decision making in the demarche of reaching the competitive advantage in the current competitive nebula.

139-159

Authors: Alina SUSLENCO

This paper analyses the opportunity of enhancing the competitiveness of universities from the Republic of Moldova through the capitalization of the creative potential of academics and students. The actuality of the topic is based on the need to ensure the competitiveness of universities, which represent those places where creation, innovation, culture and values are capitalized within an environment absorbed by creativity and built by capitalization of the potential. This work investigates the situation of the Republic of Moldova concerning students’ enrolment at the universities and analyses higher education institutions’ graduates. The research methodology was focused on the methods of empirical research, qualitative analysis, analysis and synthesis, induction and deduction, each of which contributed to the crystallization of the research results. In conclusion, it is mentioned that the academic environment of the Republic of Moldova needs academic staff’s strengthened efforts in creating and enhancing the competitiveness of universities and creating opportunities for graduate students towards an easier insertion into the labour market.