News

Daily Newsletter - 11 February 2020

Summary

Macroeconomic News (2)

Trade balance deficit dropped last year

The trade balance deficit reached EUR 17.28 billion in 2019, up EUR 2.16 billion compared to 2018. Exports increased by 1.9% to EUR 69 billion, while imports surged 4.2% to EUR 86.29 billion, according to figures released by the National Statistics Institute (INS) on Monday.

Top

Profit tax revenues doubled in 10 years

In order to increase the income tax revenues as percentage of GDP, Romania needs to produce added value, with a higher profit margin. Also, the taxation of microenterprises is a problem. The state budget's income tax revenues doubled in the last 10 years, from RON 10 billion in 2010 to more than RON 19 billion in estimated revenue for 2020. However, the share of the profit tax revenue decreased from 2% of GDP in 2010 to 1.9% of GDP in 2019 and 2020, according to Deloitte's Alexandra Smedoiu.

Top

Financial News (2)

CEC Bank focuses on organic growth

"So far we have only adjustable interest rate products. We have organized a series of focus groups with clients to find out what they like. Some clients asked for products with fixed interest rates for the first 5-7 years, but we have decided not to go in that direction because we consider it to be a difficult risk to manage over a long period of time. Moreover, our product is the most competitive on the market right now and we do not feel the need to change it," said Bogdan Neacșu, CEO of CEC Bank

Top

TransferGo: Value of money transfers doubled in 2019

TransferGo, an online fast money transfer company, managed more than 500,000 money transfers to Romania last year. The total value of money transfers, both in and out, doubled in 2019, compared to the previous year. The mobile application was responsible for most transactions.

Top

Investment News (2)

Charging station project

The European Commission (EC) approved on Monday a public support scheme whereby Romania will provide EUR 53 million for the construction of charging stations for low-emission vehicles. The scheme will cover the period 2020-2025 and will stimulate investment in charging stations for electric motor vehicles in Romania.

Top

Domnesti Substation retooling to be completed in October

The retooling of the Domnesti Substation (SET), one of the biggest investment projects for Transelectrica in the Bucharest region, will be completed this October. The project is worth a total of RON 144 million.

Top

Legislative News (2)

Senate rejects bill correcting Decree 114

On Monday, the Senate rejected Decree 1/2020, featuring fiscal and budget measures designed to freeze the salaries of dignitaries and suspend the special pension regulations in the Administrative Code. The bill is now on its way to the Chamber of Deputies for the final vote.

Top

Free transport and culture for students

Students enrolled in mandatory and vocational education will have free access to local transport services, as well as county and national transport. At the same time, students will have free entrance to museums, concerts, theater, opera and cinemas, as well as any other cultural or sports activities organized by public institutions, according to a bill passed by the Senate on Monday.

Top

Politics (2)

PSD challenges Orban nomination

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), announced on Monday that the Constitutional Court had received a complaint regarding the nomination of Ludovic Orban as the next prime minister by President Klaus Iohannis. The complaint accuses the president of using his powers in a discretionary manner.

Top

Ludovic Orban to meet party representatives

Prime Minister-designate Ludovic Orban will meet today with representatives of the parties that make up the Parliament in order to discuss early elections, according to the Cabinet's press office.

Top

Social (1)

Population growth still negative in December

Romania's population growth remained negative in December, 2019, as the number of Romanians contracted by 9,124, compared to -8,799 in the corresponding month of 2018, according to data released by the National Statistics Institute (INS) on Monday.

Top