News

Daily Newsletter - 1 February 2019

Summary

FIC (1)

Decree 114 introduces brutal changes

The businesses CDR represents, Romanian and foreigner alike, are amazed with the antagonistic way the measures of the OuG 114/2018 were presented and the discourse that accompanied them. This is not the first time the business environment is not consulted and not even warned of measures with significant consequences. Companies who are or want to become active in Romania require a stable, predictable and clear legislative framework to take (long-term) business decisions. Continued frequent, severe and unpredictable Government interventions into the legal frameworks for their businesses frustrates business activity and has a strong potential to deter investments. What particularly struck the business community and all members of the CDR, beyond the lack of consultation, are the massive changes OuG 114 brings to multiple sectors that support the modernization of the economy and which are very important for the quality of life: the energy sector, the telecommunications sector, the financial and banking sector and the capital market. Unjustifiable shocks in these areas, with measures adopted overnight could push them into a deep crisis.


Investors want PM Dancila to repeal greed decree

Business community calls again for decree repeal

Protest against Greed Decree

Open letter from business community

CDR wants Decree 114 repealed

Romanian and foreign businesspersons issue warning

CDR urges Cabinet to repeal Decree 114

CDR: Decree 114 changes rules in all sectors

CDR sends open letter to PM Dancila

CDR: Open letter to Prime Minister Viorica Dancila

CDR wants decree repealed

Teodorovici Decree will have a negative impact on SMEs

CDR wants Teodorovici Decree repealed

CDR: Decree 114 introduces brutal changes

Decree 114 introduces brutal changes

CDR urges repeal of Decree 114

CDR warning

Cabinet under assault

Foreign investors call for Decree 114 repeal

Foreign and local investors complain of Bucharest's municipal companies

Foreign investors call for Decree 114 repeal

Big companies issue warning about Decree 114

Business community warns Dancila about decree effects

Business community revolts

Business community issues warning


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Macroeconomic News (4)

Cabinet published draft budget

The state budget for this year is built on a Gross Domestic Product of RON 1,022 billion, an increase of 5.5% compared to 2018, an average inflation rate of 2.8% and a budget deficit estimated at 2.55% of GDP (cash) and 2.57% of GDP (ESA), according to data presented by the Ministry of Finance on Thursday evening. The revenues of the general consolidated budget projected for 2019 are estimated at RON 341.4 billion, or 33.4% of GDP.

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Unemployment rate fell to 3.8%

The unemployment rate dropped to 3.8% in December, 2018 (seasonally adjusted data), compared with the previous month, according to the National Statistics Institute (INS). In November, 2018, the seasonally adjusted unemployment rate fell to 3.9%.

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Cabinet needs almost RON 50 billion in 2019

The government must refinance maturing debt worth RON 27.5 billion this year. On top of that, the government needs RON 26 billion to cover the estimated budget deficit (2.55% of a GDP worth RON 1,022.5 billion, according to CNSP). The government must also pay a EUR 1 billion installment of the EC, WB and IMF loan.

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Exports of processed metal goods reached EUR 1.75 billion

The exports of processed metal goods reached EUR 1.75 billion between January and October, 2018, up 12.1% on an annual basis, according to the National Statistics Institute (INS). The imports of such goods amounted to EUR 3.11 billion, up 13.4% on an annual basis.

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Financial News (3)

RON gains ground

The national currency keeps gaining ground against the euro on the interbank market and it seems poised to enter the fourth day of appreciation after the all-time low reached last Friday. The EUR / RON pair was trading this morning in the RON 4.73701-4.7510 range.

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"The effects of Decree 114 will be very painful for the banking system"

The effects of Decree 114 will be very painful for the banking system, as well as for the entire economy, according to Paraschiv Constantin, President of the Federation of Insurance and Banking Unions (FSAB). Rumor has it that around 25% of banking employees could be laid off.

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Nonresidents' long-term deposits keep falling

The nonresidents' long-term deposits with local banks dropped to EUR 2.17 billion at the end of November, 2018, down EUR 6.5 billion from the peak value reported in 2011.

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Investment News (1)

Bucharest City Hall to launch rehabilitation and consolidation works

The Bucharest City Hall will begin the procedures for securing the construction permits for rehabilitation and consolidation works on four bridges and the Fundeni Overpass. The City Council approved the technical and economic parameters on Thursday. Most of the funds (RON 13 million) will go to the Opera Bridge.

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Politics (1)

Tariceanu: I am seriously considering a presidential run

ALDE leader Calin Popescu Tariceanu said he was seriously considering a presidential run and that he would make a decision in the coming weeks.

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Social (1)

Eurostat: 11.3% of Romanians cannot afford to heat their homes

11.3% of Romanians cannot afford to heat their homes, according to 2017 data released by Eurostat on Thursday. The situation in Portugal and Italy is worse, while Bulgaria ranks at the top of the index with a massive 36.5%. Across the European Union, 7.8% of the population could not afford sufficient heating in 2017.

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