Romania loses tens of thousands of people able to work to cancer every
year - or ends up paying millions of euros for their illness because it
has not invested in their health in time. As an example of best
practice, Western European countries have increased the life expectancy
of patients suffering from heart diseases (affecting more and more
young and middle-aged people in their prime) by ten years, by
increasing the number of heart attack management centers. Ramona
Jurubiță, FIC Vice-President stated that: it is necessary to correlate
health policies with policies of economic development in order to
reduce
the burden of the disease on active people. FIC Vice-President
discussed about Va Urma, a macroeconomic model which started in 2016,
setting
the ambition for Romania to become the tenth EU economy. Va Urma
proposes a strategic objective and general recommendations in order to
reduce the number of years of inactivity among the population, caused
by diseases.
The European Bank for Reconstruction and Development (EBRD) has reduced
its economic growth forecasts for Romania for 2022 and 2023, following
a 5.9% recovery in 2021, mainly generated by the robust private
consumption, according to a report published by the international
financial institution on Tuesday. Romania’s economy is expected to grow
by 2.5% in 2022, compared with a 2.8% advance forecast in March 2022,
and by 3% in 2023, compared with the 4.1% previously estimated level.
According to the EBRD, economy entered 2022 with a weakened position,
following a 0.1% GDP decline in Q4/2021, due to the dropping
investments and the slowing inventory accumulation.
The investor confidence index regarding activity in the euro area fell
more than anticipated in May 2022 as well, according to the latest
report from Sentix GmbH. The value of the aggregate index dropped 4.6
points, to -22.6 points, the lowest level since June 2020, as the
expectations index was down 4.2 points, to -34 points, the record low
since December 2008. The current conditions index decreased by 5
points, to -10.5 points, the lowest level since March 2021.
Exports grew by 24.4% in the first three months of 2022, to EUR 22.03
billion, and imports were up 26.7%, to EUR 29.2 billion. The trade
balance deficit stood at EUR 7.16 billion in Q1/2022, up by EUR 1.83
billion against the similar period of 2021, according to data published
by the National Institute of Statistics on Tuesday. During the interval
1 January - 31 March 2022, important shares in the structure of exports
and imports were held by the following groups of products: transport
equipment and vehicles (42.9% for exports and 32.7% for imports) and
other manufactured products (30.9% for exports and 28.9% for imports).
NBR’s updated forecast shows further considerable deterioration in the
inflation outlook, as the projected trajectory of annual inflation is
further broadly revised upwards over the entire forecast horizon, under
the strong impact of global supply-side shocks, amplified and prolonged
by the war in Ukraine and the sanctions imposed on Russia. Thus, the
annual inflation rate is expected to accelerate its rise in Q2/2022 and
to drop only gradually in the following four quarters, but more
gradually thereafter, amid broad base effects and as the aggregate
demand surplus shrinks to near zero. Inflation dynamics are therefore
likely to rise considerably above previously projected levels and fall
to single-digit levels only in H2/2023, remaining above the target
range at the end of the forecast horizon.
On Tuesday, 10 May 2022, the National Bank of Romania’s Board of
Directors decided to increase the monetary policy interest rate to
3.75% per annum, from 3% per annum, starting from 11 May 2022,
according to a press release issued by the central bank. Moreover, the
institution’s representatives also decided to raise the lending
(Lombard) facility rate to 4.75% per annum, from 4%, and the deposit
facility rate to 2.75%, from 2% per annum.
Agricultural holding Agro-Chirnogi Călăraşi, one of the biggest players
in Romanian agribusiness, has contracted RON 40 million financing from
EximBank to cover the company’s day-to-day operations. The funds were
granted with a state guarantee issued within the COVID-19 state aid
scheme, dedicated to large companies, which covers 90% of the
financing. Agro-Chirnogi activates in the grains production and trading
sector. The company was founded in 1991, being the former IAS Chirnogi,
from Calarasi County, and, since 2002, has been part of Maria group of
companies, one of the largest in Romania, controlled by Lebanese
investors.
ING Bank has decided to simplify the mortgage lending process by
allowing financial pre-approval for mortgage loans directly from the
ING Home’Bank internet and mobile banking app. This way, people
interested in buying a residence can immediately learn the maximum
amount they can borrow, without having to go to an ING Office. The new
functionality, which will be available starting from this week, allows
setting a maximum budget before analyzing existing offers on the real
estate market.
Zentiva Bucharest, the medicines plant which has been present on the
local market for 60 years, has invested a total of EUR 44 million in
the past 12 years in its production unit in Bucharest, according to the
company. Investments mainly targeted an increased production capacity
and the acquisition of equipment. All local entities owned by Zentiva
in Romania have reported a EUR 203 million turnover for 2021, which
means the combined figures of Zentiva S.A, Labormed Pharma, Labormed
Trading, Be Well Pharma and Solacium Pharma.
Estonian company Bolt, Europe’s biggest electric scooters operator, has
announced a 500% year-on-year increase in the number of electric
scooter rides in March and EUR 150 million investments to expand its
electric scooters and electric bikes operations. The company’s fleet
will exceed 230,000 electric scooters and bikes by the end of this
year. The Estonian company is present in seven cities, three of which
have been launched this year, and will be present with micro-mobility
services in several cities across the country by June.
Philip Morris Romania has announced that it will invest more than USD
100 million in 2022-2023. Philip Morris International’s investments in
Romania have reached almost USD 100 million in the past year alone. USD
500 million has been invested in the plant in Otopeni Since 2017 up to
present. During the period 2022-2023 as well, PMI will continue to
increase its production capacity.
The Ministry of Agriculture will take over from the Ministry of
Education a EUR 44 million investment from the National Recovery and
Resilience Plan (PNRR)’s funds, to equip the 57 agricultural high
schools in Romania, Secretary of State in the Ministry of Agriculture,
Sorin Moise stated on Tuesday. He pointed out that young farmers would
play a special role in the future National Strategic Program (PNS), and
that the programs dedicated to them would have separate allocations.
Deputies Luminița Barcari and Cristina Vecerdi, from the National
Liberal Party (PNL), have submitted a draft law in Parliament which
stipulates that the school curriculum will also include first aid
notions, in the subject of Biology-Anatomy and Human Physiology. The
notions would be taught to pupils in the 7th grade and would be
completed in the 11th grade. Luminița Barcari has indicated that first
aid courses are currently optional.
Marcel Ciolacu, the leader of the Social Democratic Party (PSD), stated
on Tuesday that a discussion on the reform of Romania’s Constitution
should be launched. He said there was currently a majority of over 65%
in Parliament, but did not give any details about how the fundamental
law should be modernized. He did not offer any information on the
timetable of amendments to the Constitution, but pointed out that a
special parliamentary committee must be set up, the same as in the case
of changes operated to national security laws.
The centrist party USR (Renew) delegation to the European Parliament
asked Romanian President Klaus Iohannis and Prime Minister Nicolae
Ciuca to explain why Romania joined 12 other member states that oppose
EU reform. Dacian Ciolos said he was surprised to find out that Romania
opposes some changes to the EU structure to its advantage, like
increasing the EU’s competencies on healthcare and simplifying EU
decision-making. Thirteen EU member states, including Romania, other
Central and Eastern Europe countries, and the Nordics, launched a
non-paper about potential changes to the EU treaties, saying that
"Treaty change has never been a purpose of the Conference".
The number of deaths registered in March 2022 was 26,214 (13,804 men
and 12,410 women), 3,291 fewer (1,799 men and 1,492 women) than in
February 2022, according to data published by the National Institute of
Statistics (INS) on Tuesday. 70% of the total number of deaths was
registered among people aged over 70. Moreover, 13,271 babies were born
in March 2022, 1,454 more than in February 2022.
Supporting a reduced tax rate for mothers with more than three children
and recognizing the child-raising period as a contribution period are
among the Family Affairs Ministry’s priorities, Minister Gabriela Firea
has announced. She has indicated that Family Ministry representatives
are discussing with the Ministry of Finance legislative changes to
establish gender quotas among employees, following the model already
implemented in other European countries, by amending OUG 109/2011 on
corporate governance of public companies, the introduction of tax
benefits for mothers, including by reducing the amount of taxes paid by
mothers with more than three children and the recognition of the
child-rearing period as a contribution period.