News

Daily Newsletter - 8 November 2017

Summary

FIC (1)

The Foreign Investors Council uproots the "Fiscal revolution": Any amendment will have a direct impact on the employee's net wage (Source: ziarulevenimentul.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.

The Foreign Investors Council uproots the "Fiscal revolution": Any amendment will have a direct impact on the employee's net wage (Source: ziuanews.ro)

Warning for prime minister Tudose! Sharp reaction to the "fiscal revolution" the Government is planning (Source: bugetul.ro)

The Foreign Investors Council uproots the "Fiscal revolution": Any amendment will have a direct impact on the employee's net wage (Source: stiripesurse.ro)

Prime minister announces that the Government remains against everyone: GEO amending the Fiscal Code to be approved Wednesday (Source: cursdeguvernare.ro)

Employers criticize the "Fiscal revolution" (Source: bihon.ro)

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Macroeconomic News (6)

Prime minister announces that the Government remains against everyone: GEO amending the Fiscal Code to be approved Wednesday 

Prime minister Mihai Tudose stated Tuesday that the amendments of the Fiscal Code will be approved in Wednesday's Government session, through Emergency ordinance. The statement was made after the meeting with the officials of the mayors of municipalities, annihilating their opposition by promises guaranteed by Liviu Dragnea, also present at the discussions that took place Tuesday morning, at Victory Palace.

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Siegfried Muresan takes stock of the government: "The current Government is repeater in economy!" 

"Disinterest to the concerns come from the business environment, specialists and international financial institutions and I mention here only the International Monetary Fund, the World Bank and the European Commission, the Foreign Investment Council, the Romanian-American Chamber of Trade "AmCham", Romanian Businessmen Association, the Coalition for Romania's Development, the National Council of the Romanian Small and Medium-sized Private Enterprises, the Economic and Social Council, the Fiscal Council, as well as independent economists and audit companies".

Misa: Economy turnover rose 9.5%, while the gross profit by 8.4% in the first six months 

The turnover in economy exceeded RON 609bn in the first semester, up 9.5% compared to the same period in 2016, while the gross profit climbed by 8.4%, the finance minister, Ionut Misa, stated in the plenary of the Senate at the debate of the simple motion submitted by the opposition, requesting his demission.

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Agriculture's contribution to the gross domestic product rose 123% during 2007-2016 

Agriculture's contribution to the gross domestic product rose 123% during 2007-2016, the state secretary in the Ministry of Agriculture and Rural Development, Alexandru Potor, contends, according to Agerpres.

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The net average earnings rose by RON 12 in September, up to RON 2376 

The net average nominal earnings were worth RON 2376 in September, up by RON 12 (+0.5%) compared to one month before, the data published Tuesday by the National Institute of Statistics (INS) show. In August the net average nominal earnings were RON 2364, down by RON 27 (-1.1%) compared to July.

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EBRD: Romania has returned to the pre-crisis growth rhythms 

Romanian economy would record a 5.3% growth this year, while in 2018 the economic growth will be a little lower, of 4.2%, according to the latest forecasts published Tuesday by the European Bank for Reconstruction and Development (EBRD).

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Financial News (3)

NBR keeps the key interest at 1.75% and narrows the corridor between the deposit and lending facilities rates again. Liquidity in the banking system will be managed "firmly" 

The boardroom of the National Bank of Romania decided today to maintain the monetary policy interest rate at 1.75% level per year, unchanged since April 2015, as well as to narrow the symmetrical corridor formed by the standing facilities interest rates around the monetary policy interest rate at +/-1.00 percents from +/-1.25. Thus, as of 8 November 2017, the deposit facility rate increases at 0.75%, while the lending facility rate drops at 2.75%.

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Banca Transilvania wants to buy over 39% of the share capital of Victoriabank 

Banca Transilvania announces its intention to buy an initial indirect stake of over 39% of the share capital of Victoriabank, the third bank in the Republic of Moldova, according to a press release published on Bucharest Stock Exchange (BSE) site. As a result of the acquisition, Banca Transilvania and EBRD will hold together, through the corresponding stakes, the control on Victoriabank, a compulsory takeover offer having to be conducted for the rest of stakes in accordance with the applicable legal provisions, the cited source mentions.

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Nearly 44,000 Romanians are behind on their bank installments until September 2017 

The number of retail customers who have delays in paying the bank installments higher than 30 days rose by more than 43,800 people since the beginning of the year until September, the data of the Credit Office published by the National Bank show. Only in June, over 3600 Romanians were behind on installments.

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Investment News (1)

The largest industrial park from Bihor has attracted investments worth 220m euros. "We are negotiating for the last left plots of land and we hope the park will be 100% occupied by the end of the year" 

The industrial park Oradea I, the largest in Bihor county and the fifth in the country, has attracted 45 companies up to now and hopes the park will be 100% occupied by the end of the year. At present, the resident companies have created about 4900 jobs and have made cumulated investments worth 222m euros.

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Legislative News (1)

Parliament postpones the enforcement of the Law on food wastefulness for July 2018. Meanwhile, the law must be amended 

After the Government had suspended the Law on food wastefulness, obliging stores to donate the unsold food 3 days before the expiry date, for the end of this year, the Parliament decided Tuesday to postpone the entry into force of the law by other 6 months. In this period, a working group will elaborate a draft normative act to be applicable both legally and technically.

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Politics (2)

Orban: Blocking the debate of the simple motion on energy by PSD and ALDE - an attack against democracy 

The PNL leader, Ludovic Orban, criticized Tuesday the decision of the permanent Office of the Chamber of Deputies to withdraw the simple motion on energy from the agenda and announced the document will be submitted again in each plenary session.

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A new meeting of PSD leaders, at Vila Lac 

PSD leaders have a new meeting at Vila Lac, Tuesday evening, social-democrat sources saying it is about a party given by prime minister Mihai Tudose, whose birthday is Wednesday. The PSD leader, Liviu Dragnea, prime minister Mihai Tudose and members of the Government participate in the meeting from Vila Lac.

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