Romania continues to rank last in the European Union in terms of waste collection, recycling and recovery. In this context, the Foreign Investors Council (FIC), the organization that reunites the largest Romanian companies with foreign capital, has identified 18 difficulties in the application of waste legislation and has come up with several proposed solutions. FIC Board members, Paris Nikolopoulos and Mircea Moga coordinate FIC activities related to environmental protection.
The European Commission estimates that Romania will record 1.8% economic growth next year and a 2.2% advance in 2024, while inflation is expected to peak at the end of 2022, and to remain still high in 2023, before declining in 2024, according to the EC’s Autumn 2022 Economic Forecast. After a strong 2022, Romania’s economy is set to slow down with real GDP growth at around 2% in the coming years due to higher inflation, tighter financial conditions and the fallout from Russia’s war of aggression against Ukraine.
Romania’s total external debt - public and private - grew by EUR 4.82 billion during the interval January-September 2022, to EUR 141.4 billion, of which general government debt amounted to EUR 55.2 billion, down by EUR 3.5 billion against the level recorded on 31 December 2021, according to data published by the National Bank of Romania (NBR) on Monday. NBR data show that long-term external debt stood at EUR 94.1 billion on 30 September (66.6% of total external debt), down by 3.5% against 31 December 2021, while short-term external debt amounted to EUR 47.2 billion (33.4% of total external debt), up by 21.1% compared to the level on 31 December 2021.
The future evolution of the annual inflation rate essentially depends on decisions regarding the duration and configuration of the price capping scheme for electricity and natural gas, according to a report published by the National Bank of Romania (NBR) on Monday. The National Bank expects the annual CPI inflation rate to slightly grow until the end of the year, to reach a peak of 16.3% in Q4/2022, and to subsequently decrease on the assumption that both supply shocks and aggregate demand pressures will gradually dissipate.
New orders in the manufacturing industry grew by nearly 20% in the first nine months of 2022 compared to the same period of last year, according to data published by the National Institute of Statistics (INS) on Monday, 14 November. According to the official statistics, during the period 1 January - 30 September 2022, increases were recorded in the intermediate goods industry (+23.1%), the durable goods industry (+21.1%), the consumer goods industry (+18.6%) and the capital goods industry (+17.1%).
Romania’s current account deficit grew to EUR 20.1 billion in the first nine months of the year, up by 59% year-on-year, as international trade in goods generated a deficit of EUR 23.7 billion, up by EUR 7.3 billion, according to data published by the National Bank of Romania (NBR) on Monday. Moreover, the surplus on the balance of services increased by EUR 2.1 billion, to EUR 8.6 billion, after the transports sector reported a EUR 3.9 billion surplus, and telecommunications, computer and information services recorded a EUR 3.7 billion surplus, up by EUR 1 billion.
The Ministry of Finance (MF) borrowed RON 479.9 million from banks on Monday, 14 November through a benchmark government bonds issue with 72-month residual maturity, at an average yield of 8.31% per year, according to data published by the National Bank of Romania (NBR). The nominal value of the issue was RON 400 million and the banks subscribed RON 557.9 million.
Banca Comercială Română aims to contribute to the development of female entrepreneurship and joins Professional Women’s Network Romania, in supporting the "Trusa pentru Antreprenoare" (Female Entrepreneurs’ Kit) education and mentoring program, according to a press release. The new edition will take place during the period 25 November 2022 - 7 July 2023 and will include 15 workshops and over 60 hours of entrepreneurship education and networking.
French retailer Decathlon has opened a new store in Romania, in Alba Iulia, the first inauguration this year. The network has reached 29 units following this investment. The store in Alba Iulia has about 1,040 square meters and sells over 2,500 items and pieces of equipment for more than 80 sports. Decathlon also has a logistics hub for Eastern Europe in Romania, from where it supplies products to various countries such as Bulgaria, Ukraine and Greece.
OMV Petrom has started the production of AdBlue, a product that reduces polluting emissions from diesel engines, which will be initially sold in OMV and Petrom gas stations, and in other networks starting from next year. AdBlue consists of about 1/3 urea and 2/3 demineralized water. The new production unit is located in the south of Bucharest and the investments needed for the project amounted to about EUR 800,000.
On Monday, 14 November, Minister of Development, Public Works and Administration Cseke Attila signed 25 new contracts financed through Component 10 - Local Fund of the National Recovery and Resilience Plan (PNRR). The contracts signed between local public authorities and the Ministry of Development target the purchase of non-polluting transport vehicles and charging stations, and their total value amounts to RON 125,162,305.76, according to a press release issued by the Ministry of Development, Public Works and Administration.
On Sunday evening, the leader of the Social Democratic Party (PSD) Marcel Ciolacu spoke on Antena 3 TV station about special pensions. He said that talks on the topic of special pensions would end on 31 December 2022 through a draft law initiated by the Ministry of Labor, approved by the Government and sent to Parliament for adoption, pointing out that the pension reform assumed through the National Recovery and Resilience Plan (PNRR) would not be carried out through an emergency ordinance.
The Home Affairs Ministry has drawn up a draft government decision which proposes declassifying some of the documents classified by the state organisms during the pre-1990 dictatorial regimes, but the solution has generated discontent among some historians and researchers. Since 26 May 2022, access to documents held by the National Archives of Romania (ANR) has been severely restricted, under the pretext of protecting so-called "classified information" and following recommendations by the Home Affairs Ministry’s Directorate General for Internal Security (DGPI).
The Senate has adopted, as the decision-making body, the draft law approving the financing contract for the Regional Emergency Hospital in Craiova signed between Romania and the European Investment Bank. The new regional emergency hospital in Craiova will become a tertiary level center for the network of hospitals in the south-west region of Romania and will treat critical patients and cases requiring high-level technology and expertise. According to the draft law, the new regional emergency hospital will have more than 800 beds, will be a seven-storey building complex and will replace Craiova County Emergency Clinical Hospital.
The European biofuels industry has hit back at NGO allegations that the use of soy oil is driving deforestation in the Amazon, emphasizing that soy imported into the bloc can legally not come from deforested land. A new report by the environmental NGO Transport & Environment (T&E) found that the increase in demand for soy, a crop used to produce biodiesel, is encouraging the conversion of natural land into industrial farmland in Brazil.
More than 25% of young people aged 15-29 in Romania are neither in employment nor in education or training, according to Eurostat data for Q2/2022. Romania ranks second in the European Union in terms of share of young people who are not enrolled in any form of education and are not working, with 25.7%. In Italy, the percentage is almost 40%. At EU level, about 1 in 4 (almost 25%) of young people aged 20-34 is neither in employment nor in education or training.
Prime Minister Nicolae Ciucă stated on Monday, during a meeting with a delegation of the National Confederation for Female Entrepreneurship (CONAF), led by Cristina Chiriac, at Victoria Palace that reducing school dropout was a strategic objective assumed by the Government and which required an integrated approach from several perspectives. The Government is also implementing the National Program "Out of Care for Children", which has been allocated over EUR 6 million from the state budget, for children’s psychological and emotional support and safety. Moreover, the RO-Alert system for missing children has rescued thousands of children from difficult situations since its launch.