Daily Newsletter - 19 July 2019


Macroeconomic News (4)

Daianu: The need for an ample correction of the consolidated budget is unquestionable

The need for an ample correction of the consolidated budget is unquestionable, but the unknown factor is how the adjustment is to be made, what the impact on people and companies will be, and what timeframe is necessary, according to Daniel Daianu, President of the Fiscal Council.


Q1 income tax revenues to go to UATs

The Minister of Finance, Eugen Teodorovici, announced that the state's income tax revenues from the first quarter would go entirely to the territorial-administrative units (UAT). "We had a very clear and transparent discussion. [...] We made it very clear that the first quarter income tax revenues would go to UATs," said Teodorovici after the Mehedinti County Organization's meeting on Thursday.


Farmers complain of labor shortage

The main problem for Romanian farmers at present is the labor shortage. Farmers claim people do not want to come to work, regardless of wages and conditions, because they would rather stay at home and receive welfare from the state.


Minister says EU fund absorption rate must reach 36%

The Minister of European Funds, Roxana Manzatu, said in Timisoara that Romania must reach an absorption rate for EU funds of 36% by the end of this year. This would mean more than EUR 2 billion. The labor shortage is contributing to the slow absorption rate.


Financial News (2)

BNR's earnings - The past decade

The National Bank of Romania (BNR) lost money in only one year out of the past ten: 2013. The best year was 2009, when BNR logged RON 4.6 billion in earnings. Unlike commercial banks, BNR is not focusing on profit maximization and can take a loss, as long as it achieves price stability.


Romanians have trouble paying installments

The National Bank of Romania (BNR) reported that the average non-performing loan rate of the Romanian banking system was 4.80% in May, up slightly from the all-time low of 4.75% in April, but still below the figure reported at the end of 2018.


Investment News (2)

CAS to invest more than EUR 32 million in water network modernization

The Somes Water Company (CAS), subordinated to the Cluj County Council, is investing more than EUR 32 million in the modernization of the drinking water networks in 21 communes around the town of Dej. The investment is part of a EUR 355 million project financed with EU money.


New expressway contract to be awarded by end of June, 2020

The contract for conducting the feasibility study for the Bacau-Neamt Expressway will be signed by the end of August, with the design and construction works to be launched by the end of June, 2020, according to the Minister of Transport, Razvan Cuc.


Legislative News (1)

CCR rejects Constitution revision

The Constitutional Court of Romania (RCC) rejected on Thursday the legislative proposals to revise the Constitution initiated by both PNL-USR and PSD-ALDE. The court ruled that the ban on amnesty and pardon for acts of corruption is unconstitutional.


Politics (2)

Tariceanu demands presidential resignation

Senate President and ALDE leader Calin Popescu Tariceanu said on Thursday, following the Constitutional Court's ruling on the Constitution revision project, that President Klaus Iohannis "had drawn the people into a reckless adventure", calling on the people to make decisions on issues that are against the rule of law. Tariceanu urged Iohannis to resign "unconditionally and immediately from office".


USR: Today's CCR ruling ignores the votes of more than 6.4 million Romanians

The Save Romania Union (USR) said the Constitutional Court's decision to reject the Constitution review process, which was launched by USR and PNL, "ignores the votes of more than 6.4 million Romanians". USR will continue to fight in the parliament for the implementation of the May 26 referendum results.


Social (1)

Income inequality up in 2018

The inequality coefficient in Romania, calculated as the ratio between the salaries of the best paid 20% and the worst paid 20% of employees, indicates that the best paid workers made more than seven-fold what the worst paid employees made in 2018. Inequality was up 0.7 points from the previous year, putting Romania second in the EU income inequality index.