News

Daily Newsletter - 16 June 2017

Summary

FIC (2)


Romania's development must start with positioning the country as the 10th biggest economic power in the European Union 

Romania's development must start with positioning the country as the 10th biggest economic power in the European Union, up from 16th, according to Mariana Gheorghe, CEO of OMV Petrom. This economic vision regarding Romania's development is based on a 20-year plan, which is focused on three key pillars: modern infrastructure, demography and human capital, public and private efficiency and was developed by the FIC members.

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Foreign investment in Romania 

The Bucharest University of Economic Studies (ASE) and the Foreign Investors Council (FIC) launched the study entitled Foreign Direct Investments: their evolution and importance for Romania.The main conclusion of the study is that FDIs played a decisive role in the past 20 years and have helped the Romanian economy in its transition to functioning free markets. Considering the large investment needs of Romania, it is likely that foreign investors will continue to play a significant role in the future. Some conclusions of the study that are worth pointing out: Foreign companies employ a third of the work force in the private sector in Romania; Foreign companies are responsible for 70% of Romanian exports; Romania has the lowest stock of FDI/capita in the region; A lot of the FDI in Romania came as equity; Almost half of the Romanian FDI Stock has flowed in industry; Foreign investors contributed significantly to increasing the productivity of the Romanian economy.

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Macroeconomic News (3)

Romania climbs in global prosperity index 

Romanian prosperity has grown over the past two years at a slightly faster pace compared to the Central and Eastern European average. On the other hand, the initial level of prosperity was low. Between 2007 and 2017, Romania climbed seven places in the global prosperity index, according to a study by the Legatum Institute and Erste Group.

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Romania and Poland had lowest food prices in EU 

The price of food and non-alcoholic beverages sold in Romania and Poland were half of the EU average in 2016, according to data released by Eurostat. Prices ranged last year between 62% of the EU average (Poland and Romania) and almost 150% (Denmark).

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Angela Cristea, EC: "The short-term economic growth rate is huge, but let's see how things stand next year" 

Brussels officials want all EU member states to experience sustainable economic growth and short-, medium- and long-term development, according to Angela Cristea, head of the EC delegation to Bucharest. Cristea reminded local officials that the biggest question is whether the current "spectacular growth" is sustainable.

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Financial News (3)

MFP approves Prima Casa budget increase 

The Ministry of Finance (MFP) approved on Thursday a RON 500 million increase of the Prima Casa guarantee budget, as requested by the National SME Loan Guarantee Fund (FNGCIMM). The RON 500 million left unused from the original budget was redistributed to Piraeus Bank, OTP Bank, BCR, ING, Bancpost, Raiffeisen Bank, BRD, CEC Bank and Leumi Bank.

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Euro surges to five-year high 

The national currency has been losing ground for the past few days because of the internal conflict gripping the Social Democratic Party (PSD). The euro climbed to RON 4.5667 on Wednesday, before shooting to RON 4.5872 yesterday, a five-year high.

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Banca Transilvania launches payment watch 

Banca Transilvania has teamed up with Mondaine, Oberthur Technologies and MasterCard to launch the BT contacless watch, a payment tool that can replace cards when shopping, both at home and abroad. The watches cost between RON 1,090 and RON 1,690.

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Investment News (2)

SIF Moldova invests EUR 34 million in residential project 

Tesatoriile Reunite, a company owned by SIF Moldova, has received the construction permit for the Baba Novac (Bucharest) residential project, according to a press release sent to the Bucharest Stock Exchange (BVB). The project for building 363 housing units was estimated at EUR 34 million.

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HP rents more office space 

Hewlett-Packard has signed a seven-year lease for another 2,377 square meters of office space in Novo Park, the office ensemble whose main tenant it already is. The park was developed by Genesis Development, a company owned by Liviu Tudor.

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Legislative News (2)

President sends bill back 

President Klaus Iohannis has asked the Parliament to review the bill featuring the "Pork Grown in Romanian Farms" program, a state aid scheme for local pig farmers. The President noted that the program is in breach of the European Union's regulations on state aid.

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President of student association issues warning 

The president of the Constanta Student Association (AEC), Constantin Manda, stated that the new education law must not perpetuate past mistakes and that a consensus should be built for the next 12 years, involving the students, teachers, parents, private sector and politicians.

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Politics (1)

Tariceanu: PSD and ALDE will introduce a motion of censure on Monday 

The president of ALDE, Calin Popescu Tariceanu, announced on Thursday that ALDE and the Social Democrats (PSD) would introduce a motion of censure against the Grindeanu Cabinet on Monday in order to address the new political crisis.

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