President Klaus Iohannis is rumored to be about to surprise the business community in a very unpleasant way by refusing to sign into law the draft Fiscal Code, following intense pressure from the European Commission. "Mr. Iohannis is tempted to send the Fiscal Code back to the Parliament with a request to review on grounds that it breaches Romania's EU Accession Treaty," say sources close to the President.
The state budget continues to show a surplus after the first five months of this year. The almost 11% increase in revenue collection led to a 0.9% of GDP surplus at the end of May, with some help from the accelerating economic growth and the downward adjusting of investment spending. Budget revenues amounted to RON 93 billion at the end of May, up 10.8% on an annual basis, while investment plunged 26%, down to RON 2.9 billion.
Representatives of the European Commission stated that the Romanian government had taken significant measures in certain fields and that the macroeconomic situation is strong. However, the general progress is insufficient, mainly concerning the fiscal policy.
Banca Transilvania shares were the object of three deals on Friday, June 26. Investors traded 5.25 million shares (0.2% of the bank's share capital) for a total of RON 10.8 billion. The prices was slightly above the market quotation.
Dan Suciu, spokesman of the National Bank of Romania (BNR), stated that the BNR is prepared for a Greek default and had prepared for it in order to protect the Romanian banking system. Local banks controlled by Greek interests are subject to Romanian legislation and the state guarantees deposits up to EUR 100,000. The long-term effects depend on the euro's trends after a possible Grexit. The RON has been depreciating slightly for the past days.
The National Bank of Romania (BNR) liquidated last year all its Japanese state bonds positions and invested more in short-term European state bonds and in bonds issued by the international financial institutions.
Panasonic aims for the top spot on the Romanian market for plugs, extenders and switches, which is estimated to be worth EUR 10 million. If sales reach a satisfactory level, the company could even build a manufacturing plant in Romania.
Pragosa, a Portuguese builder of roads, has invested EUR 20 million in its Romanian subsidiary since 2007 and is now aiming for a EUR 10 million turnover. "Pragosa's main clients are the public authorities from the Prahova, Dambovita and Ilfov counties, plus a series of private clients," said CEO Mario Sousa.
With a fortune made in the oil business, Ion Simion, the manager of Confind Campina, has decided to spend EUR 22 million on a medical centre with 60 beds located in Poiana Campina, a commune with less than 500 inhabitants, located 30 km away from Ploiesti.
The personal insolvency was law published in the Official Gazette on Friday and will come into force in six months on December 26, 2015. The bill was passed by the Chamber of Deputies last month in a unanimous vote. All parliamentary caucuses backed the bill.
PSD leaders told Victor Ponta in no uncertain terms to return to Romania in order to decide whether the party continues in power or not. The pro and against camps seem to have been joined by a third camp that wants Ponta punished. Unhappy with the powers granted by Ponta to interim PM Oprea, more and more PSD members talk about leaving the Cabinet.
EU leaders have engaged in one of the most unpleasant joint actions by partially accepting to answer the challenge posed by the massive flow of African migrants to Europe. Talks went up beyond midnight during the first day of the EC meeting in Brussels, but the result was a series of "cautious" decisions.