News

Daily Newsletter - 7 March 2017

Summary

Macroeconomic News (4)

0 VAT rate for housing and advertising services 

The project for slashing the VAT rate to 0% for the selling of houses to retail clients sounds like a good idea for developers and clients. However, the effects of this measure will require some careful consideration because it could make ANAF's work much harder.

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"The Cabinet will have to take steps" 

The Cabinet will have to take steps if the poor budget figures seen at the end of January do not improve before the end of the first quarter. The earliest date for a budget revision is July, when the Cabinet can slash spending or boost revenues, which are the lowest in Europe, according to Ionut Dumitru, president of the Fiscal Council.

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Government prepares a budget revolution: Income tax to be entirely collected to local budgets 

The Government prepares amendments to several laws so that the income tax to be directly and entirely collected to the local government (municipalities, county councils) as of 1 January 2018, to finance their functioning, stated the Minister of Regional Development, Public Administration and European Funds (MDRAPFE), Sevil Shhaideh. The statement – quoted by Agerpres – was made Wednesday evening at a press conference in Tirgu Mures.

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Consumption up 6% in January 

Consumption grew 6.4% in January, much lower compared to the previous January's 15.6%. Compared to December, consumption contracted 25%. "Retail sales increased by a meager 0.2% in January, compared to the previous month," said ING Bank's Ciprian Dascalu.

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Financial News (3)

Senator Zamfir: "Debtors have good chances to win" 

The Constitutional Court's explanation of the conversion bill ruling follows the spirit of the debtor relief ruling and speaks clearly of unpredictability, according to Senator Catalin Zamfir. "The explanation stated clearly that contracts can be rebalanced by freezing the exchange rate," said Zamfir.

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Raiffeisen Banca pentru Locuinte wins CC lawsuit 

Raiffeisen Banca pentru Locuinte (RBL) has won its own legal battle with the Court of Accounts, same as BCR Banca pentru Locuinte (BCR BpL). The ruling cancels the Court of Accounts' Decision 18/2015, as well as the document issued by CC's complaints resolution commission on June 29, 2016.

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CEC Bank offers low-interest investment loans 

CEC Bank has decided to extend to the end of June the campaign offering low-interest RON-denominated investment loans to companies. The campaign includes investment loans, credit lines for standard investments, loans for financing EU-funded projects and investment loans provided by the EIB.

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Investment News (3)

Romania, Hungary and Slovakia are competing for an EUR 200 million Mitsubishi investment 

After Renault, Ford and Daimler, another big car manufacturer intends to establish an engine factory in Romania: the company is Mitsubishi, announces ProTV. According to government sources quoted by the TV station, Romania competes with Hungary and Slovakia for an investment estimated at more than EUR 200 million. The news breaks when last year we reached the highest level of foreign direct investment in the last 8 years: EUR 4 billion. Japan’s Mitsubishi went Wednesday to the Government to ask what Romania could offer them to establish here the turbine engine plant that they plan to build next year.

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Mega Image goes to Cluj 

Mega Image, the biggest supermarket operator in Romania, will open at the beginning of next month its first store in Cluj county. The store will be located at the site of the former Ursus brewery, in the Platinia arcade.

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Secpm opens new Cluj-Napoca store 

Food supplement importer Secom has invested EUR 40,000 in a new Cluj-Napoca store, its 12th in the country. The company is currently selling its products in Bucharest, Bacău, Braşov, Cluj-Napoca, Iaşi, Ploieşti, Piteşti, Sibiu and Timişoara.

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Legislative News (1)

MFP released new norms for public debate 

The Ministry of Finance (MFP) published on Monday a draft order that would amend and complete the implementation norms for the Fiscal Code. The document features regulations regarding the profit tax, the income tax, VAT and the mandatory social contributions.

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Politics (2)

Turcan: "They want to rescue those who had been sent to prison on corruption charges" 

Raluca Turcan, interim leader of the National Liberal Party (PNL), stated on Monday that the party would oppose the PSD's pardon bill.

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President Klaus Iohannis does not need mandate 

President Klaus Iohannis does not need a mandate from the Parliament to attend the European Council's meeting. However, the President should not rule out a debate that would "united the politicians around the national interest". "Hard times are coming to Europe," said PSD leader Liviu Dragnea.

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