News

Daily Newsletter - 2 November 2017

Summary

FIC (3)

The Foreign Investors Council contradicts Tudose: Companies do not support the transfer of contributions. Net wages will be affected (Source: business24.ro)

The conclusions of the FIC consultation process with its members: companies do not welcome this measure, because they do not understand its economic rationale. The Government did not carry out an impact study to quantify all its effects, which means that the risk of unintended consequences is extremely high. There is no certainty that once the contributions are shifted, there will be no new taxes on employers. The fluidity of fiscal policies makes planning difficult, and at the same time it raises the fear that, if misaligned decisions make public finances unbalanced, they will be repaired by tax measures taken inadvertently.

Fiscal chaos proposed by the Government: user guide and who are the main beneficiaries of the new evasion loopholes (Source: hotnews.ro)

"The amendments of the Fiscal Code generate a lack of predictability and unbalance the business environment" (Source: bursa.ro)

Foreign investors to Tudose: Companies do not support the transfer of contributions (Source: revista22.ro)

Foreign investors contradict Romanian PM on contributions’ transfer (Source: romania-insider.com)

Foreign Investors Council: Employers do not support the transfer of social contributions from the employer to the employee and do not understand its economic reasoning (Source: ziare-pe-net.ro)

Update: PM Tudose says wages will not decrease after the transfer of contributions to employees. FIC disagrees, says wages will be affected (Source: romaniajournal.ro)

Romanian and foreign companies close ranks and reproach the Government: Why don't you listen to us? Stop the shock therapy! Investors are waiting to see what happens to the fiscal tittup (Source: profit.ro)

The big business organizations reject the small fiscal revolution and say they were not consulted about the measures that should enter into force in 2018 (Source: hotnews.ro)

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The Coalition for Romania's Development warns the Government: This climate is destructive for any type of economy (Source: business24.ro)

Romania can live the moments from 2009-2010 again if we do not do what is needed, Dragos Anastasiu, the representative of the Coalition for Romania's Development, said underlining that there is a "deep concern" caused by three shortages in the economy: real dialogue, predictability and labor force. The Coalition for Romania's Development gathers the big business associations from Romania, employers, Romanian Business Leaders, Foreign Investors Council (FIC), the US Chamber of Trade, Romanian Businessmen Association, the embassies of the 26 EU states, at the level of commercial attache, and the Embassy of the USA and Canada, in order to offer the coherent basis for consultation with the Government and other public institutions on topics impacting the Romanian economic and business climate.

Romanian and foreign companies close ranks and reproach the Government: Stop the SHOCK therapy! (Source: money.ro)

Business environment: "Stop the shock fiscal therapy. Romania loses investments and competitiveness" (Source: cursdeguvernare.ro)

The big business organizations reject the small fiscal revolution (Source: ziare-pe-net.ro)

AmCham Romania: The fiscal measures announced by the Government hinder businesses and decrease investors' confidence (Source: business24.ro)

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Cartel Alfa requests the DEMISSION of the labor minister, Olguta Vasilescu, and mediation of the conflict by the president (Source: mediafax.ro)

"Provided that the highest income inequity is recorded in Romania and nearly one quarter of workers (that is people who have a job!!) enter the category of poor, the Government goes ahead with puzzling measures, supported by no segment of the society (inclusively the Foreign Investors Council is against this measure), which lead the society to the opposite direction: it makes workers poor and burdens them, it deprives them of rights in front of employers and deteriorates the public services".

Cartel Alfa requests the DEMISSION of the labor minister, Olguta Vasilescu, and mediation of the conflict by the president (Source: digi24.ro)

The demission of the labor minister, Lia Olguta Vasilescu, is requested (Source: antena3.ro)

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Macroeconomic News (4)

Romania, in the top of the biggest honey exporters in the EU. Apiarists sent honey for export at an average price of RON 16 per kilogram in 2016 

Romania ranks fifth in the top of the biggest honey exporters in the EU, after it sent 10,370 tins of honey for export, worth 37.5m euros, according to Eurostat data.

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INS: Romania's imports of energy products rose 15.7% last year 

Imports of energy products rose 15.7% last year,compared to 2015, mainly because of the higher quantities of natural gas and crude oil brought from abroad, according to a press release of the National Institute of Statistics (INS). Production of primary energy dropped by 6.0% last year compared to 2015. The internal gross energy consumption fell 0.6% on the previous year, while the final energy consumption recorded an 1.9% growth.

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Metallurgical industry, at its lowest level of the past 4 years. Over 100 companies disappeared, more than 1000 employees left 

The metallurgical industry, one of the key branches of the economy once, hardly succeeds to find orders, the turnover reaching the lowest level of the past 4 years last year, RON 33.5bn respectively, provided that the trade in metallurgic products barely exceeded RON 6bn. In 2013, businesses in metallurgy outstripped RON 34bn, while the trade in profile products - RON 6.65bn.

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Risk perception increases in Romania. The cost of Government funding - at the maximum level of the past 3 years 

The interest rate of state securities with 10 years maturity reached 4.34%, the highest level since the autumn of 2014. The cost of funding recorded an over 45% growth in the past 12 months and 24.4% since the beginning of the year. The interest rates on the Romanian state securities market rose last week "due to the intensification of risks on medium-term financial stability", according to a Banca Transilvania report issued Tuesday.

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Financial News (3)

The new offer whereby banks want to persuade Romanians to take a loan, despite Robor explosion: Mortgage loans with fixed interest 

BCR has launched a new offer of mortgage loan with fixed interest of 4.1% per year in the first five years and AER of 4.94%. The offer comes provided the increase in Robor interests, used in calculating the variable interest. Analysts warn that Robor may reach 5% next year provided that it already doubled last month.

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MAXIMUM LEVEL OF THE PAST THREE YEARS 3-month Robor climbed at 1.89%

3-month Robor, used in calculating the interests of the most loans in lei, rose up to 1.89% Wednesday, the highest level since November 2014 up to now, according to the data published by the National Bank of Romania. Robor stagnated at 1.87% Monday and Tuesday.

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The Competition Council analyzes the transaction whereby OTP Bank takes over Banca Românească 

The Competition Council analyzes the transaction whereby OTP Bank takes over Banca Românească SA, as well as the Romanian assets of the branch from London and of the branch from Malta belonging to the National Bank of Greece SA (NBG). The taken over assets are the loans and guarantees concluded by the London branch of NBG and by the Maltese NBG branch, with various Romanian clients.

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Investment News (2)

The Government approves the initiation of the procedures for building 5 regional hospitals, others than the EU-funded ones 

The Government approved Wednesday, through a memorandum, the initiation of the procedures necessary for building 5 regional hospitals in Timisoara, Targu-Mures, Constanta, Braila-Galati and Brasov. The communication issued by the Government refers to other regional hospitals than those which have already funding approved by Brussels, in Iasi, Cluj and Craiova.

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The Swiss company Clariant begins the construction of a bioethanol factory in Romania, which they promise to be "emblematic". The Swiss wanted state aid, the Ministry of Finance refused 

The Swiss chemical company Clariant begins the construction of a bioethanol factory in Romania, with a capacity of 50,000 tons per year. Last year the Swiss asked for a state aid of RON 69m for funding the investment.

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Legislative News (1)

Iordache: The draft law amending the justice laws - in endorsement procedure at CSM, Government, the Legislative Council 

The draft law amending the justice laws submitted by PSD and ALDE is in endorsement procedure at CSM, Government, the Legislative Council, Florin Iordache, the head of the special parliamentary commission in Justice, announced Wednesday.

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Politics (2)

Titus Corlatean: The ambassadors of the USA and the Netherlands have put pressure on me for appointing Laura Codruta Kovesi in the "top position" 

The former justice minister Titus Corlatean stated Wednesday at the investigation commission on SPA archive that the ambassadors of the USA and the Netherlands had put pressure on him in 2012 for appointing Laura Codruta Kovesi in the "top position".

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Tariceanu: A part of trade unions make a lot of declarations, some of them worrying; Hossu wants to show he is active 

The leader of the Senate, Calin Popescu Tariceanu, stated Wednesday that there is a part of trade unions which make worrying declarations now, instead, in 2010, when the wages and salaries were actually cut, they did not say a word.

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