News

Daily Newsletter - 11 February 2019

Summary

Macroeconomic News (2)

EC sees Romanian economy slowing down

The European Commission's winter forecast expects the Romanian economy to grow 3.8% in 2019, a far cry from the Cabinet's 5.5% estimate. The trend of investment will depend largely on the impact of policies introduced in December.

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Eugen Teodorovici: The budget is based on a 5.5% growth rate

The Cabinet approved during the latest meeting the draft State Budget and Social Security Budget for 2019, Minister of Public Finance Eugen Teodorovici announced at a press conference. "This year's budget, approved by the Government, is based on a 5.5% increase in the Gross Domestic Product (GDP) to RON 1,022.5 billion, and a budget deficit of 2.55%, lower than last year's 2.88%," said Teodorovici.

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Financial News (3)

How will Romania join eurozone?

The Cabinet has recently announced that Romania will give up the national currency and move to the euro in 2024. For the first time since the financial crisis, the state seems determined to observe this new deadline. For this purpose, the Cabinet has commissioned a National Plan for the adoption of the euro and a background report to this plan, drafted by a Commission formed of the relevant structures of the state and civil society.

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BRD posted record earnings

BRD - Groupe Societe Generale logged RON 1.56 billion in earnings for 2018, up 10.6% from the previous year, according to CEO Francois Bloch. The banking side accounted for RON 1.54 billion in earnings, up 12% year-on-year. "We'll pay what we have to pay, we won't oppose this, but we're hoping the tax would be changed," said Bloch.

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Francois Bloch, CEO, BRD-GSG: "The asset tax is unsustainable and will certainly be modified"

The Romanian banking system cannot bear an unsustainable asset tax, such as the one imposed by Decree 114, and many banks will lose money, which will certainly lead to a modification of the tax, according to BRD CEO Francois Bloch.

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Investment News (1)

PRIMER members to invest in anti-falsification measures

The local drug plants owned by members of employer organization PRIMER announced they are ready to launch on the market drugs that meet the new EU safety and anti-falsification requirements. The aggregated investments amount to more than EUR 10 million.

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Legislative News (2)

Minister Teodorovici says Decree 114 can be amended

The Minister of Finance stated on Friday that he would not rule out a modification of the asset tax regulations, provided that reasonable arguments were put forward. "I would not want to forecast a modification of this decree. In general, legislation is amended if reasonable arguments are put forward," said Teodorovici.

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Journalists and mass-media technicians get income tax exemption

A bill drafted by members of the ruling coalition aims to grant an income tax exemption to journalists and mass-media technicians. The justification for this measure is the "very difficult" state of the media sector.

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Politics (2)

IMAS poll

The Social Democratic Party (PSD) has dropped below 25% in the poll commissioned by USR and conducted by IMAS. The poll focuses on voting intentions in the European Parliament and local parliament elections. The National Liberals (PNL) have lost some ground since December, while USR is doing better than PLUS.

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USR and PNL demand parliamentary inquiry

The Save Romania Union (USR) and the National Liberal Party (PNL) have demanded the establishing of a parliamentary inquiry commission in order to look into the positive budget adjustment conducted by the Dancila Cabinet in November, 2018. "We want to find out how the Ministry of Finance managed to conduct a POSITIVE adjustment, when the economic data could only allow a NEGATIVE adjustment," reads an USR press release.

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Social (1)

Free public transport for Bucharest students

Students enrolled in Bucharest schools and high schools will be given free access to the public transportation services provided by the Bucharest Transport Company (STB).

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