News

Daily Newsletter - 3 November 2017

Summary

FIC (1)

Foreign investors see no benefit in the transfer of social contributions from the employer to the employee (Source: angajatorulmeu.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. 

Foreign investors are amazed at Government Tudose's fiscal inventions: "What is the rationality?" (Source: buzznews.ro; )

Romania’s largest union organization prepares for general strike (Source: romania-insider.com)

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

The big Romanian and foreign companies close ranks for criticizing the current governors' economic amateurism (Source: manager.ro)

The employer is not Santa Claus with unlimited resources (Source: jurnalul.ro)
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Macroeconomic News (7)

How has the Government united the trade unions, employers and analysts (Source: digi24.ro)

"We consider that the opinion that employers support or even had suggested the transfer of social contributions from the employer to the employee was accredited erroneously. As a result of the information available in the public space, FIC has carried out a wide consultation on this topic, among its members. Mr. prime minister, we want to inform you about the conclusion of the consultation among FIC members: companies do not welcome this measure because they do not understand its motivation and economic rationality", a letter addressed to prime minister Mihai Tudose on 31 October by the Foreign Investors Council shows. But, yesterday, the labor minister, Lia Olguta Vasilescu, continued to speak on the same note.

Trade unionists request the demission of the labor minister (Source: diacaf.com)

Trade unionists ask for the labor minister's demission (Source: adevarul.ro)

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Cartel Alfa asks for the demission of the labor minister and for the mediation of the conflict by the president (Source: informatia-zilei.ro)

"Provided that the highest income inequity is recorded in Romania and nearly one quarter of employees (that is people who have a job!!) fall under the category of the 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: they make workers poor and burden them, deprive them of rights in front of employers and deteriorate the public services", according to the cited source.

Cartel Alfa requests Olguta Vasilescu's demission. Iohannis called to mediate the social conflict between the social partners and the Government (Source: epochtimes-romania.com)

CNSLR- Frăția trade unionists begin procedures for general strike in the national economy. Cartel Alfa asks for the Labor minister’s dismissal (Source: romaniajournal.ro)

ANTENA3 - The demission of the labor minister, Lia Olguta Vasilescu, is requested (Source: ziarero.antena3.ro)

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The Government debates Friday the fiscal measures announced by the finance minister for 2018 (Source: mediafax.ro)

The members of the Government meet Friday, at 14 o'clock, for discussing the set of fiscal measures announced by the finance minister, Ionut Misa, provided that employers and president Iohannis announced their disagreement with these measures.

The Government debates today the fiscal measures announced by the finance minister for 2018 (Source: gds.ro)

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Prices at industry producers rose slightly in September, the annual growth rhythm climbed at 4.3%

Industrial production prices rose 0.3% in September compared to one month before, while the annual rate climbed at 4.3%, the data published Thursday by the National Institute of Statistics (INS) show. In August, industrial production prices rose 0.7% compared to the previous month, while the annual rate increased at 4.1%.

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INS: Industrial production prices rose 4.3% in September 2017 compared to September 2016 

Overall industrial production prices (internal market and external market) rose 0.3% in September this year compared to August 2017 and 4.3% compared to September 2016, the data published Thursday by the National Institute of Statistics (INS) show. According to INS, prices grew by 5.2% in the manufacturing industry and by 8.7% in the extractive industry, in September 2017 compared to the same month of last year. In the extractive industry, the highest price rise was recorded in the extraction of crude oil and natural gas (10.5%).

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Dragnea: It is the first time when wages increase seriously for everyone. Tudose: Trade unions have an awry logic thinking that "we close the country and nor bees will work" 

The PSD leader, Liviu Dragnea, and prime minister Mihai Tudose, stated Thursday, in Hunedoara county, again that the transfer of social contributions from the employer to the employee will not generate wage drops, but, on the contrary, "it is the first time when wages increase seriously for everyone". Dragnea said "no sane and honest-minded businessman will afford to use this amendment for decreasing the employee's salary", while the prime minister criticized and gibed at trade unions, contending they are nonsensical and have an awry logic thinking that "we close the country and nor bees will work".

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The National Prognosis Commission has reviewed the economic growth estimations up 

The National Prognosis Commission has reviewed the economic growth estimations for Romania up again at 6.1% from 5.6% as it forecast previously. According to the Autumn prognosis, GDP will be situated at RON 842.5bn this year, compared to RON 837.1bn in the preliminary estimation of the autumn forecast, Agerpres informs.

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Financial News (3)

Mortgage lending increases despite the exhaustion of Prima Casa funds and of the rise in interests in lei. In September, the stock of funding in lei grew by RON 860m 

The stock of mortgage loans in lei reached RON 36.3bn after banks had granted funding worth RON 860m in September, the data of the National Bank show.

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Chiritoiu: Romanian banks' profits and commissions are higher than in other EU states, while competition does not really work. We have proposed solutions for supporting people with loans 

Romanian banks' profits and commissions are higher than in other EU states, while competition does not really work, Bogdan Chiritoiu, the head of the Competition Council, stated Thursday for News.ro, adding that he had presented to the Parliament several solutions for helping consumers.

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Romanian bankers want to maximize the profit: interests on citizens' deposits drop, those on loans increase 

The latest data provided by NBR for September indicate a drop in interests on citizens' and firms' deposits, both in those on the balance and in those newly awarded. Also, interests on new and old loans and on natural and legal persons rise slightly. On average, the difference between the medium interest on loans and deposits grows in its turn step by step and the increase is not due to the rise in Robor index exclusively.

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Investment News (1)

Decathlon opens its first logistic center in Romania, built by the company of one of the richest Belgian families, which will supply three countries 

The sports equipment retailer Decathlon launches a strategic distribution center next Thursday, in Stefanestii de Jos commune, Ilfov county, where it will concentrate its logistic services. The space was built by the real estate company WarehousesDePauw (WDP). Measuring 29,000 m2, the logistic center will supply over 30 stores in 3 South-European countries: Romania, Bulgaria and Greece.

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Legislative News (2)

The law on compulsory home insurance is amended - ASF vice president: PAID has not achieved its objective. The legal framework must be amended 

The Financial Supervision Authority (ASF) must amend the legal normative framework in order to increase the coverage degree of home insurances, because something does not work, Cornel Coca Constantinescu, ASF vice president, showed Thursday.

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From Police to Militia: priority moves from "citizen's safety" on keeping public order, according to a MIA draft law

According to a MIA draft law targeting the Law on the organization and operation of the Romanian Police, it would not be in charge of the "citizen's safety" anymore. Art. 26 paragraph 1 specifies: " it shall apply measures for maintaining public order, citizen's safety, for preventing and combating criminal phenomenon".

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