News

Daily Newsletter - 18 July 2017

Summary

FIC (1)

"Romania must become the EU's tenth biggest economy" 

"Romania can become a significant player in the EU and it must rise from the 16th place to 10th place. Having the seventh most populous country in the EU set its sights on becoming the tenth biggest economy could be seen as ambitious, but it's doable," said Mariana Gheorghe, member of the FIC Board. "This vision for Romania's economic development over the next 20 years, as spelled out by FIC members, could be achieved by focusing on three strategic directions".

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Macroeconomic News (4)

Foreign debt up EUR 1.87 billion 

Romania's foreign debt, which includes both public and private borrowing, increased by EUR 1.87 billion in the first five months of this year, reaching a total of EUR 94.2 billion, according to the National Bank of Romania (BNR). The foreign debt figure is drawing close to the December, 2014 high of EUR 94.7 billion.

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Fitch Ratings sees budget deficit at 3.7% this year 

US rating agency Fitch announced that it expects Romania's budget deficit to reach 3.7% at the end of the year, far above the Cabinet's official target of 2.9% of the GDP. The deficit spike is the result of the decision to slash the VAT rate and some excises, while increasing salaries and pensions.

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Romania had third lowest annual inflation rate 

At 0.7% per year, Romania had third lowest annual inflation rate in the European Union in June, according to data released on Monday by Eurostat. The lowest inflation rates were reported by Ireland (-0.6%) and Denmark (0.4%).

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Government needs an additional 0.7-0.8% of GDP in taxes to stay below deficit cap 

The budget deficit will probably reach 3.8% of the GDP this year, following the decision to drop the turnover tax, according to a report from market research firm Capital Economics. US rating agency Fitch expects the deficit to rise to 3.7% by the end of the year.

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Financial News (1)

Piraeus Bank sells subsidiaries 

Piraeus Bank has made it its target to reduce its exposure to the Romanian, Bulgarian and Serbian subsidiaries, as well as to the Greek non-banking assets that do not belong in the core assets category, according to CEO Christos Megalou.

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Investment News (3)

Kaufland to open four stores 

German retailer Kaufland announced that it would open four new hypermarkets by February, 2018, the end of the current fiscal year. Valer Hancas, head of the chain's communication division, said the four new stores would be located in Bucharest, Cluj-Napoca and Satu Mare.

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Catinvest and Carrefour Romania invested EUR 2 million in Tom Constanta modernization 

French group Catinvest, owner of four Romanian shopping centers, and Carrefour Romania have invested almost EUR 2 million in the first phase of a modernization project involving the Carrefour Constanta. The upgrade work started in January.

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Ten infrastructure projects inaugurated 

Ten infrastructure projects financed by the US European Reassurance Initiative were inaugurated on Monday at the Mihail Kogalniceanu Air Base. The projects are worth USD 4.6 million and among them are aircraft maintenance facilities, warehouses and training facilities.

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Legislative News (1)

President signs IT bill 

President Klaus Iohannis signed on Monday the bill granting a ten-year profit tax exemption to tax-payers that operate exclusively in the innovation, R&D and IT sectors. The bill also features a 1% revenue tax on microenterprises.

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Politics (1)

Tudose and Borisov agree to joint meeting 

Prime Minister Mihai Tudose and his Bulgarian counterpart, Boiko Borisov, agreed in a telephone conversation that a new joint meeting of the Romanian and Bulgarian cabinets should be held in Varna, in September. The meeting will focus on setting up a trilateral economic agreement between Romania, Bulgaria and Greece.

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