Some months ago, the White Book 2015 issued by the Foreign Investors Council asked the Romanian authorities to pass rules implementing tax consolidation for groups of companies. The FIC noted that there are some measures if adopted in the new Fiscal Code and implemented would do more as compared with tax cuts. Speaking about legislation on corporate tax consolidation it should be passed to allow the compensation of profits and losses within a group of companies. However: "Tax consolidation was not accepted by the Ministry of Finance. [...] The stated reason was that Romania cannot afford it," said tax consultant Dan Schwarz.
The Senate's Budget Commission issued yesterday a report unanimously endorsing the Fiscal Code amendments negotiated by the party leaders last week, including the two-stage VAT rate reduction. Viorel Arcas, chairman of the commission, stated that the purpose of these amendments is simply to spread the measures over a longer period of time.
Prime Minister Victor Ponta stated on Monday, quoting ANAF data, that the VAT rate cut for food products had increased the state's revenues in July and August. However, the PM is concerned that the drought at the problems plaguing the agriculture sector will hurt Romania's economic growth this year.
Although the authorities had initially announced that the program for converting all CHF-denominated loans to the national currency at a discount would come into force by the end of August, this is not the case. Moreover, representatives of the Ministry of Finance have proposed a 15% discount on principals, instead of the 25% promised to the debtors.
The takeover of Volksbank Romania by Banca Transilvania was approved by the National Bank of Romania (BNR) and the effective takeover date was set to December 31, 2015, according to a notification sent yesterday to the Bucharest Stock Exchange (BVB). The merger project will be posted on BT's website tomorrow.
The BCR Supervisory Council has nominated Sergiu Manea, the Vice-President in charge of Corporate Banking and Capital Markets, as Tomas Spurny's successor to the position of CEO. The nomination has to be approved by the National Bank of Romania (BNR). Spurny decided to leave the bank at the end of this month in order to pursue other professional opportunities, especially since he is known as a restructuring manager and the bank's restructuring process is almost over.
Starwood Hotels&Resorts made its entrance on the Romanian market with the reopening last week of the first Sheraton hotel in the country. The hotel is a former Howard Johnson refurbished by Starwood at a cost of EUR 6 million.
The Cluj-Napoca City Hall has launched a RON 10.5 million investment project for modernizing Faget Street. 3,000 meters of pavement and sidewalks will be rehabilitated, including the consolidation work and the support walls needed at certain spots.
The Minister of Labor, Rovana Plumb, stated on Monday that Ministry officials and labor representatives will meet this week and the next in order to negotiate the future salaries bill. "Some opinions were provided in writing and we will go over them at the Ministry," said Plumb.
The Senate is scheduled to vote on the Fiscal Code today before sending the bill on to the Chamber for a Thursday vote. The bill could be on the President's desk by Sunday, according to Liviu Dragnea, the interim leader of the Social Democratic Party (PSD).
President Klaus Iohannis has appointed Sandra Pralong as a new state councilor at the Department for the Relationship with Romanians Living Abroad (DRRAG). Pralong had run for a Senate seat in 2012 representing the National Peasants and Christian Democrats Party (PNTCD), but lost the election.
The doctors will gather today for a protest in front of the Government's headquarters in order to demand higher salaries and better work conditions. The negotiations held yesterday with the Minister of Health, Nicolae Banicioiu, and other health system officials failed to prevent the protest from taking place.
All health services will be provided solely on the basis of health cards, beginning with September 1. Those who did not receive their cards must request them from the health insurance officials. On Monday, the authorities announced that 300,000 cards were still undistributed.