News

Daily Newsletter - 18 February 2019

Summary

Macroeconomic News (3)

Agreement secured on market supervision and product compliance

An agreement was secured on Friday regarding the proposed regulation on market supervision and product compliance. The Committee of the Permanent Representatives approved the preliminary agreement reached on February 7.

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Romania can export mutton and sheep to Iran

Romania can export mutton and sheep to Iran, with around 800,000 heads expected to be sent to this destination in the next six months following the opening of the sheep market, according to the Ministry of Agriculture and Rural Development (MADR).

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Teodorovici: Increasing the deficit to 2.76% of GDP was the only way we could increase children aid

"Increasing the deficit to 2.76% of GDP was the only way we could increase children aid, beginning with March 1, but the deficit cap for 2019 would not be exceeded," said Minister Eugen Teodorovici on Friday evening.

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Financial News (3)

Andrei Radulescu, Banca Transilvania: Borrowing to increase 1.6% this year

Private borrowing will increase by 1.6% this year, 2.6% in 2020 and 3.3% in 2021, compared to a growth rate of 6.6% in 2018, according to Andrei Radulescu, head of macroeconomic analysis at Banca Transilvania. The bank expects the value of deposits to increase by 8.2% this year, 8.5% in 2020 and 9.3% in 2021.

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Asset tax could reduce banking system's ROA

The profitability of the Romanian banking system was above the European average, but not exceptional, and the asset tax could turn this indicator from "above average" to "below average", which could push some banks out of the market, albeit not the big ones, according to Valentin Lazea, chief economist of BNR.

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CNSP released eurozone accession plan

The National Strategy and Forecast Commission (CNSP) published on Friday the National Eurozone Accession Plan. The document was put together by BNR experts coordinated by Daniel Daianu and was officially approved by the Cabinet. Before accession, Romania must reach five strategic targets, including the correction of certain macroeconomic imbalances and the reduction of the real convergence gap.

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Investment News (2)

Transgaz investment up fourfold in 2018

Transgaz, administrator of the national transport system for natural gas, posted a 372% increase in investment for 2018. The total investment spending was close to RON 500 million last year, with the bulk of the funds going to expanding the transport system and building the pipeline linking Romania and Moldova.

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Ploiesti-Siret high speed railway to be built as PPP

The Ploiesti-Siret high speed railway will be placed on the list of strategic investment projects that would be implemented under public-private partnerships, according to a draft decision published by the National Strategy and Forecast Commission (CNSP). The 505-kilometer line would be built alongside the existing railway lines.

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Politics (2)

President Iohannis met with Angela Merkel, Mike Pence, Martin Weber and Michel Barnier in Munich

President Klaus Iohannis had a series of bilateral meetings at the Munich Security Conference, on Saturday. The president met with German Chancellor Angela Merkel, US Vice-President Mike Pence, leader of the EPP group Manfred Weber and the chief negotiator for Brexit, Michel Barnier.

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Orban: Dragnea's days as Chamber president are numbered

Ludovic Orban, leader of the National Liberal Party (PNL), said the party's top priority is to remove Liviu Dragnea from the position of Chamber of Deputies' president. "Dragnea's days as Chamber president are number. We'll do the right thing as soon as possible," said Orban.

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Social (1)

Minister of Education wants special needs children segregated

The Minister of Education wants special needs children segregated from the other students. Experts war that such a decision would not make special needs children better students. Parents also disagree with the minister.

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