The potential growth in Romania is 3% per year, but it could be higher, 4-5% per year, but not through fiscal and monetary policies, but unpleasant and expensive reform in the short run, but with long-term effects, according to the chief-economist of the National Bank of Romania, Valentin Lazea, quoted by Agerpres. He added: "Romania, from a macroeconomic point of view, has a very good situation, which they reached with sacrifices, in time, in the last five years, and it would be a shame for this hard-earned stability to be lost due to policies with short time horizon. (...) The potential growth is calculable, the European Commission, the International Monetary Fund are calculating it, and for Romania, it is somewhere around 3% per year. Can we increase Romania's potential to 5? Yes, but not through fiscal and monetary policies, but through unpleasant things, expensive in the short run, but with effects in the long run". The BNR official mentioned as examples of reforms necessary to increase the potential of the Romanian economy, coupled on the three factors that lead to a healthy and lengthy increase in the economy, namely capital, labor and productivity. To stimulate the capital, Lazea says a better attraction of direct foreign investments is necessary, especially channeling them to tradebles sectors, not real estate, financial services or malls and stores, as it happened in the past, a better absorption of European funds, the transition of BVB from a frontier market to an emerging market, the stimulation of the economic growth model on investments and exports, rather than an increase through consumption, and the revitalization of the public-private partnership in major investment projects.
The unobserved economy of Romania is 22% of the Gross Domestic Product (GDP), according to the National Institute of Statistics (INS) or 28% according to the estimations of professor Schneider, 10% over the European average, stated Ionut Dumitru, president of the Fiscal Council. He explained that the main causes are the burden of taxes, the low quality of institutions, the regulation, the level and quality of public services and the infrastructure. He stated that the unobserved economy is formed of the underground economy that is hidden to avoid paying taxes, illegal production banned through law, the informal sector and the production of households for own consumption. As for the causes, the burden of taxes, especially those on labor, play an important part. "The more cumbersome the fiscal level, and cumbersome can mean bureaucracy, the more the hidden economy increases. We have a quite big fiscal burden on labor. In terms of low salaries, of up to 80% of the average salary per country, the fiscal burden on labor is bigger than the states around us", stated Dumitru. The quality of the institutions is another problem. We are talking about the right application of the fiscal code, the reign of law, the right to property, the strict application of contracts and bureaucracy and corruption. "We are doing the best in terms of opening a company, we are doing the worst in terms of e-government, the citizen stays at the counter, 20 counters. Estonia has a website where you can open a company, you can vote anywhere you are in the world", said Dumitru. The regulation is another cause, especially in terms of the increase in the minimum wage by law. "The ratio between the minimum wage and the average wage reaches 50%. It is true that the minimum wage is very small, but the average wage is also very low. It seems that we pressed a lot on this chapter, we reach the index in Europe, alongside Slovenia and Greece", he added.
The investments in the economy will become one of the economic growth engines again starting this year, until 2019, while final consumption (private and governmental) will have positive, but temperate evolutions, according to the fall forecast of the National Forecasting Committee (CNP). The investments, that increased in one year (2011) from the beginning of the crisis to last year, will report in 2015 a 7.6% increase every year, marking a point of inflection in the evolution of investments. CNP data published at the end of last week places the evolution in percentages of investments every year over the evolution of consumption: investments will increase on average by 7% annually, and consumption a little over 4% from 2015 to 2019. Given that the GDP, in the version of the National Forecasting Committee, will evolve positively, from 3.5% in 2015 to 4.7% in 2019, such an increase is in line especially since the same forecast indicates that the "potential GDP" will go from 3.0% this year and 3.5% next year to 4.3% in 2019.
The activity from the industry did not show signs of decreases in August, but the persistence of the poor growth, which has lasted for five-six months, will make resuming the expansion difficult, according to the Industrial Barometer conducted by IRSOP and SNSPA. The index for the total volume of production shows 56 points, compared to 55 in July, as under 50, the decrease starts. The tendencies have similar forces and maintain the total industry stationary, revealed the survey: the percentage of companies that report increases in production increased by 7 points and the percentage of companies that reported decreases also increased, by 6 points, while companies with the same production decreased by 12 points. The supplies confirm the restriction. For approximately three months, the index of supplies has remained almost the same, under 50 points. "When sales are not going as well, some companies prefer producing less obtaining lower income, to avoid high costs with excessive supplies. Sometimes, the cost of the excess cost can be higher than the lower income resulted from a lower production", explains the Barometer.
In the meeting of the plenum from Tuesday, Senate adopted the legislative initiative of Senator Cristiana Anghel involving the abolition of article 120 from GEO no. 99/2006 regarding credit institutions and the adequacy of the capital, according to Agerpres. According to article 120 from the ordinance, "the loan contracts, including the real or personal guarantee contracts, signed by a credit institution, are executory titles". One of the reasons for the law proposition, initiated by Cristiana Anghel and signed by Senators from PC, PSD, UNPR and PNL, is that "thousands of people were evacuated from their houses after the forced execution initiated by banks or collections of receivables (the latter functioning illegally)". According to the document, these persons were not offered the chance of an opposition or an appeal to the decision of the judge to approve the forced execution, nor the chance of being protected by the court", as it happens in most countries from the European Union".
Banca Transilvania announced its clients that they will no longer be able to make certain payments at the cashier's offices of the subsidiaries. Paying the utility bills at the cashier's offices of Banca Transilvania will no longer be possible as of November 1 2015, the bank announced its clients. However, the bills can be paid in the following ways: the payment ATM (Facturel), BT24 Internet Banking & Mobile Banking (including BT24 Facturi), Direct Debit and ATMs. The alternative payment methods mean mobility and, according to the case, availability 24/7 and gratuity. As of November 1, clients will have access to the cashier's offices of the bank exclusively for banking operations - deposits or cash withdrawals, the payment of installments, exchanges.
Eurobank, the Greek group that owns on the local financial market Bancpost and the consumption loan division, is preparing to sell a package of bad loans (NPL) of half EUR 1 billion (nominal value plus interests and sanctions), according to sources from the banking market. The loans are related to Bancpost, Eurobank Retail Services - the consumption loan division, but also includes loans "parked" outside - which were issued in Romania and removed from the balance of the bank. There are discussions and the package might exceed this level, mentioned the quoted sources.
Iulius Management Center, run by businessman Iulian Dascalu, will invest more than EUR 220 million in a multi-functional urban regeneration project in Timişoara, according to the model already applied in Iasi with the project Palas, where the investment was EUR 260 million. The project, called Openville, will have a total surface of 594,000 square meters, and Iulius Mall Timisoara will be integrated in this concept. Here, seven A class office buildings will be set up, with a total surface of over 131,000 square meters for rent, including the tallest building from Romania, 155 m high. Currently, the tallest building from Romania is Sky Tower from Bucharest, 137 m high.
Deputies postpone the debate on the initiative to modify Law 193/2000. The president of ANPC: "PSD wants to withdraw the legislative initiative". The MPs from our country seem to be going against the European current, at least in terms of the legislation regarding consumers of services. Contrary to what is happening in other countries, where politicians try and sometimes even manage to promote and adopt laws in favor of banking clients, in Romania, things are completely different. If nine months are enough for a man to be born, in Romania, the same period (since January, when the crisis of loans in CHF exploded) is not enough for a law that can save many destinies to gain momentum. However, a legislative project that aims to modify the Law regarding abusive clauses from the loan contracts signed by consumers and professionals will be debated in the Legal Committee from the Chamber of Deputies, after being approved by the Senators. Additionally, the version that passes the Senate contains certain clauses that are against consumers and turn the law from a support for clients into a support for banks, as both debtors and the representatives of the National Authority for Consumer Protection (ANPC) say. "If these modifications pass, the octopus will win. Nobody will recover anything, although banks have stolen a lot so far", say persons with loans in CHF, who started a campaign of sending e-mails to MPs a few days ago, in which they stress that they do not agree with the possible modifications of Law 193/2000.
The notion of "teleemployee" and "telelabor" will be introduced in the labor legislation, any modifications made in the labor contracts have to be conveyed in writing to the employees, part time employees will have fewer days off and more additional hours will be made in sectors such as surveillance or medical services - these are just some of the modifications that will be applied in the current labor legislation, if it is approved by the Parliament. A legislative proposition to modify the labor legislation, initiated by the National Union Bloc - an organization that has collected more than 130,000 signatures from citizens with the right to vote for this initiative - passed on the sly the Senate and is currently debated at the Chamber of Deputies, which is a decision forum. Although some of the provisions proposed in this legislative initiative are in favor of employees (such as the reduction of the vacation period for those who work part time, currently having the right to as many days off as full time employees), some foreign investors say if adopted, this project will lead to a decrease in the competitiveness of the companies and Romania.
Robert Negoita and Liviu Dragnea fought in front of the press. The candidacies for head of the Social-Democratic Party (PSD) caused tensions yesterday, Robert Negoita and Liviu Dragnea fighting in front of the press, before the mayor of District 3 from the capital announced that he would join the race. Liviu Dragnea, interim leader of the social-democrats, asked mayor Negoita to explain why he asked the journalists to go to the headquarters of the party. Dragnea was visibly upset by the presence of the press at the headquarters of PSD, as the press conference prepared for the mayor of District 3 to announce his candidacy for head of PSD had not been announced officially. According to Mediafax, the journalists who were at the headquarters of PSD were kept outside the conference room when Robert Negoita met with the leader of the governing party, the latter leaving the building. Robert Negoita asked Liviu Dragnea if he can invite the journalists to the conference room, to make a statement. "You can do what you want!", answered Dragnea, saying that he "does not know anything" about a conference and asking him for a private discussion.
Thousands of jobs will be offered at the Top Employers fair, which starts this fall. The career event will take place between October 16 and 17 in Timisoara and in Bucharest between October 23 and 24, while between October 2 and 9, the virtual edition of the fair will take place. "The TOP employers event is an important project as far as careers are concerned, being the biggest job fair in Romania. 88% of HR specialists from the big companies that have taken part over the years as exhibitors, recommend TOP employers to fulfill the recruitment plans of their company. This fall, we noticed an increase in the interest to participate from the employers, so until now, more than 70% of the stands available in Bucharest and Timisoara are reserved", stated Cristina Carataş, project manager at TOP employers Bucharest. According to a press release, after analyzing the resumes of those who took part in the previous editions of TOP employers, they realized that the profile of the visitors is diverse, the candidates being specialized in various sectors of activity, from IT, engineering, to financial-banking, marketing, administrative, HR, the legal sector.
Patients can benefit from a bilateral cochlear implant discounted by health insurance funds through the national program of treating deafness, according to the National Health Insurance Fund (CNAS), which mentions that there is no provision that limits the number of these implants per patient. "In the national program of treating deafness through audio prostheses that are implanted, there is no provision that limits the number of cochlear implants that can be discounted for an insured party, by the health insurance fund. If two cochlear implants are necessary, the doctor is the one who decides if these are made simultaneously or in order. Regardless of the decision, the costs of the cochlear implants will be paid by the insurance fund", according to a press release from the National Health Insurance Fund (CNAS), quoted by Mediafax. According to the quoted source, if the requests of cochlear implants exceed the infrastructure capacity and human resource of doctors to perform this type of surgery, they will decide the list of priorities. Such a list will also be made if the implant requests exceed the number of devices at a given moment at the sanitary unit that carries out the program.