News

Daily Newsletter - 10 September 2020

Summary

FIC (1)

CDR: Bill transferring Romexpo property for free dodges competitive business environment

The bill passed by Parliament avoids the competitive environment and creates a serious precedent, both regarding to the value of the generated economic damage and the involvement of the highest legislative body in a project with a major impact on Bucharest without conducting transparent consultations with all interested parties, according to the Coalition for Romania's Development (CDR). Among CDR's members are FIC, AmCham, CCIFER, AOAR, AHK, RBL, CPC, and CNIPMMR.

Business community wants Romexpo transfer cancelled 

Business community criticizez Parliament's decision 

Business community criticizez Parliament's decision 

CDR: Bill transferring Romexpo property for free dodges competitive business environment

CDR: Bill transferring Romexpo property for free dodges competitive business environment


CDR: Bill transferring Romexpo property for free dodges competitive business environment

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Macroeconomic News (3)

Trade deficit reached EUR 10 billion

The trade deficit rose to almost EUR 10 billion after the first seven months of the year, but July brought some positive news. Exports decreased less compared to the corresponding month of the previous year, while the trade deficit growth was limited to 5% after the initial shock of the pandemic crisis passed.

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Structure of net investment in the economy changed under COVID impact

Net investment in the national economy amounted to RON 41.5 billion in the first half of this year, up 1.5% compared to the corresponding period of 2019, according to data released by the National Statistics Institute (INS).

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Support program for major energy consumers operational

Alro Slatina, Romania's leading aluminium producer, has received around RON 243 million in state funds under the program for supporting major energy consumers, according to the Minister of Economy and Energy, Virgil Popescu. More such companies will receive state help soon.

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Financial News (4)

Real estate market demand up 15% in August

Real estate market demand increased by 15% in August, compared to January, after a sharp drop of almost 70% at the end of March because of the Covid-19 pandemic, while Cluj-Napoca remained the most expensive city, according to a statement from a real estate company. After a promising start of the year, when demand jumped 11% in the first quarter compared to the corresponding period of the previous year, market uncertainty and restrictions imposed by the authorities led to a second quarter drop of up to 70%.

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CC analyzes Glass Container takeover

The Competition Council announced on Wednesday that it is analyzing the transaction through which glass packaging manufacturer Vetropack Austria Holding AG intends to acquire Glass Container Company and Glass Container Prim, based in the Republic of Moldova. Following this transaction, the Vetropack Group will indirectly acquire Glass Container's two Romanian subsidiaries.

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Credit Europe Bank Romania posted RON 13 million in Q1 earnings

Credit Europe Bank Romania reported RON 4.1 billion in total assets for the first six months of this year, while the loan portfolio increased to RON 2.1 billion. The bank's revenues amounted to RON 124 million, while earnings reached RON 13 million.

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Car registrations down 37.8%

The Romanian car market saw a 37.8% drop in sales for the first eight months of the year, according to the DRPCIV report on registrations. August registrations contracted by a dramatic 52.5%, down to 12,940 units.

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Investment News (2)

Verifone buys 2Checkout

2Checkout, a business founded in Romania 14 years ago, was bought by US giant Verifone, one of the leading providers of payment and e-commerce solutions worldwide. "In the short term, our services will not change and customers will not feel the difference. We will continue with the 2Checkout vision and path, and then we will develop a long-term plan," the company announced.

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Ceetrus unveils Resita real estate project

Ceetrus, developer of the Coresi neighborhood in Brasov, has launched the Resita master plan, featuring four stages for developing a mixed real estate project that would include a mall, an aquapark, offices and a hotel. These stages will be correlated with the development of the residential component.

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Legislative News (2)

Labor Code amended

The Parliament rejected on Tuesday a bill drafted by UDMR and PSD MPs that would have forced all employers to organize their HR and payroll operations either by designating qualified employees or by contracting specialized external services.

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PSD bill would give employees 7.5% of earnings

All companies could be forced to give employees at least 7.5% of their earnings, on top of salaries and other benefits stipulated by individual or collective labor contracts, according to a bill drafted by several deputies belonging to the Social Democratic Party (PSD), as well as a former USR deputy.

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Politics (1)

President optimistic about country's economic situation

President Klaus Iohannis said the government is preparing next year's budget based on a growing economy, which will push up salaries, pensions and state aid. As for this year's increases, the budget cannot afford more, according to the president, who also accused the Social Democrats of populism.

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Social (1)

Romania has highest number of students per teacher

In 2018, Romania had highest number of students per teacher in the entire European Union. Every Romanian teacher was educating more than 19 primary school students, compared to a EU average of 13.6.

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