News

Daily Newsletter - 4 October 2017

Summary

FIC (3)

Foreign Investors’ Council launches White Book 2017 with policy recommendations 

The Foreign Investors’ Council, the business association comprising 130 members that have created over 180,000 jobs in Romania, have launched a new edition of its White Book, a strategic document that includes recommendations aimed at improving the overall business environment.

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Eric Stab, FIC: Romania can become one of top 10 EU countries in 20 years. See what the conditions are… (Source: romaniajournal.ro)

Romania’s place is among first ten economies of the European Union (EU) and can get there in 20 years if some measures are to be implemented day by day, Eric Stab, Vicepresident of the Foreign Investors Council (FIC), told on Tuesday, at the launch of the new White Book edition.

FIC: Romania can become one of the first ten EU countries in 20 years, but we must work day by day (Source: agerpres.ro)

Aloof dream: Romania can be in top 10 EU economies by 2036: "We must invest in infrastructure, workforce market, health and reduce bureaucracy" (Source: zf.ro)

FIC: Romania can be in top 10 EU economies by 2036: "We must invest in infrastructure, workforce market, health and reduce bureaucracy". (Source: zfcorporate.ro)

FIC: Romania can become one of the first ten EU countries in 20 years, but we must work day by day (Source: bizlawyer.ro)

Eric Stab: "Romania can become one of the most powerful ten EU countries by 2036" (Source: zf.ro)

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Foreign Investors' Council: Without an efficient IT capacity, ANAF will not reduce evasion through split VAT (Source: cursdeguvernare.ro)

The officials of the Foreign Investors' Council (FIC) think that ANAF will not be able to process VAT reimbursement requests in the split payment system without establishing an efficient IT capacity. ANAF should pursue automatically the firms' default risk and answer to the reimbursement requests in the three days provided by law.

FIC: Romania risks an infringement procedure if the split VAT is compulsory for all the firms (Source: agerpres.ro)

FIC: Romania risks an infringement procedure if the split VAT becomes compulsory for all the firms (Source: replicaonline.ro)

FIC: Romania risks an infringement procedure if the split VAT becomes compulsory for all the firms (Source: bizlawyer.ro)

FIC: Romania risks an infringement procedure if the split VAT becomes compulsory for all the firms (Source: diacaf.com)

Foreign investors: Romania risks an infringement if the split VAT is compulsory for all the firms (Source: sursazilei.ro)

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Macroeconomic News (3)

Romania wants to draw on Poland's development strategy (press) 

Bucharest authorities intend to promote a part of the elements of the development strategy elaborated by the conservatory government from Warsaw, an article published Tuesday in the Polish daily newspaper Rzeczpospolita, informs. The regulations simplifying the launch of a business and a program supporting innovation are among the measures the Romanian authorities are interested in. Also, Romania intends to establish a sovereign investment fund, following the model of the Polish Development Fund (PFR), and the general director of PFR, Pawel Borys has joined a team of experts that will advise the Romanian Government in the creation of an investment fund.

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Industrial production prices grew 4.1% in August 

Industrial production prices grew 4.1% in August compared to the same period of last year, the data of the National Institute of Statistics show. In August 2017, the overall industrial production prices (internal market and external market) rose 0.7% compared to July 2017. As for the increases on the big industrial groups, the most important jump, of 4.9%, was recorded by the energetic industry in August 2017 compared to August 2016, followed by intermediate goods industry (+4.4%), durable goods industry (+3.8%), capital goods industry (+3.5%) and by the everyday consumer goods industry (+3.4%), Agerpres writes.

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ANRE postpones gas markup for 1 November 

The National Energy Regulation Authority (ANRE) postponed the decision to increase gas price for household consumers, the head of the authority, Niculae Havrilet, stated Tuesday for Agerpres. Officially, ANRE will wait for the Parliament to adopt GEO 64/2016 first, the modification of the final price entering into force as of 1 November.

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Financial News (5)

ROBOR - FROM MAXIMUM TO MAXIMUM Adrian Mitroi: "Consumers will always be the losing party in the relation with banks" 

Robor interest jumps from maximum level to maximum level, reaching the 1.71% threshold yesterday, from 1.58% - the level recorded Friday by this index. The above values, announced for 3-month Robor, are the maximum levels of the past 24 months, the interbank interest being subject to some constant rises for more than one week. Robor's evolution does not surprise analysts who estimated there will be a period when interests, gotten at historic minimums, will begin to increase. The economic analyst Adrian Mitroi considers that in a functional economy, the increase in interests is sometimes needed.

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The head of the Economic Commission from the Senate, liberal Daniel Zamfir: Robor could not rise so fast unless NBR allowed it 

The head of the Economic Commission from the Senate, liberal Daniel Zamfir, stated Tuesday that Robor could not rise so fast in this period unless NBR allowed it. "It is very clear for me that Robor could not rise so fast in this period unless NBR allowed it. I hope today (Tuesday), after the discussions held at the National Bank, things will calm down and become normal again. I don't think there is such a big hunger of liquidity on the market for Robor to reach such a level in such a short time. Of course the additional revenues from excises were eaten by the increase in interests", Daniel Zamfir stated.

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Isarescu, about ROBOR's rise: There were several factors. The state earned more, there was also a certain pressure on the exchange rate. It will fall, but not until it was once 

Governor Mugur Isarescu explains the increase in interests on the interbank market by the restraint of liquidity as a result of the state's higher budget earnings at the end of the month, which corresponded to the establishment of banks' minimum compulsory reserves, as well as to fundamental factors, the higher expectations regarding inflation growth and of a stricter monetary policy of NBR. Isarescu also admits there were pressures on the exchange rate, but did not commented the central banks' interventions directly.

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NBR pumps liquidity and reduces interests in Lombard loan - first such operation in the past 3 years 

The boardroom of the National Bank of Romania (NBR) has decided to narrow the symmetrical corridor formed by the standing facilities interest rates around the monetary policy interest rate at +/-1.25% from +/-1.50%. The monetary policy interest rate remained unchanged at 1.75% per year, according to a communication issued Tuesday.

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NBR: The interests on the interbank market rose provided the upward revision of inflationist anticipations 

The interests on the interbank market rose in the third quarter of this year provided the upward revision of inflationist anticipations and the registration of some liquidity fluctuations, while inflation grew faster than it had been forecast on medium term, the National Bank of Romania (NBR) announced Tuesday. 3-month Robor index, under which the interests of the most loans in lei are calculated, reached 1.8%, the highest level since November 2014 up to now.

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Investment News (1)

The European Commission has approved 252m euros investments for the expansion of the metro network from Bucharest 

The European Commission has approved 251.8m euros investments for Romania in six big infrastructure projects, in the expansion of the metro line 5 from Bucharest. "Due to the European Union, Bucharest will have a modern metro network. This thing will have a positive impact on the quality of the air from the city, on the local companies, tourism and, of course, on the residents from the neighborhoods that will be served this way", the European commissioner for regional policy, Corina Cretu, has stated.

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Legislative News (1)

Ionut Misa: "We have not received the final form of the Law on pensions yet to see which is the budget impact" 

The Law on pensions is completed, the finance minister, Ionut Misa, stated today, specifying that he did not receive the final form of the document yet to see which is the budget impact. At the exit from a meeting he had with the executive management of the National Bank of Romania (NBR), Misa stated "I understand that the Law on pensions is completed", according to Agerpres.

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Politics (2)

Croatia's president: The fact that Romania did not accessed to Schengen is a testimony of Europe with several speeds 

Croatia's president, Kolinda Grabar-Kitarovic, stated Tuesday that Romania's non-accession to Schengen space is a testimony of Europe with several speeds. Grabar-Kitarovic, during a state visit in Romania, met Tuesday with the students and teachers of Bucharest University.

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The Chamber of Deputies debates the simple PNL-USR motion on transport infrastructure, Tuesday 

The Chamber of Deputies debates the simple PNL-USR motion on "Romania's transport infrastructure under the reign of PSD interests: disillusion, demagogy, discouragement", Tuesday, the final vote being scheduled for Wednesday. Pursuant to the document, signed by 69 liberal deputies and by 23 USR deputies, the Ministry of Transports has become the "battlefield of PSD, of the interests of some leaders who have understood the management structures with dubious characters, without expertize in the field, but reliable for them".

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