News

Daily Newsletter - 11 November 2021

Summary

Macroeconomic (3)
Financial (3)
Investment (4)
Legislative (1)
European News (1)
Social (3)
Macroeconomic 
Annual inflation rate grew to 7.9% in October 2021
Romania has recorded the biggest price increases since 2008 up to present. The annual inflation rate grew to 7.9% in October 2021, from 6.3% in September, considering that prices of non-food products were up 11.39%, those of food products increased by 5.25%, and services became 3.96% more expensive, according to data published by the National Institute of Statistics (INS) on Wednesday. According to the INS, the harmonized index of consumer prices in October 2021 compared to September 2021 is 101.32%. The annual inflation rate in October 2021 compared to October 2020, calculated based on the Harmonized Index of Consumer Prices (HICP), stands at 6.5%.
The year 2021 will end with a trade deficit of about EUR 23 billion
The year 2021 will end with a trade deficit of about EUR 23 billion, according to Mihai Ionescu, president of the National Association of Exporters and Importers in Romania, who considers that this is the cost paid by the country’s budget following this year’s governing, as the people appointed at the Ministry of Economy’s helm acted as if exports did not need any support at all. Mihai Ionescu has also filed a criminal complaint against former Economy Minister Claudiu Năsui, accusing him of abuse of office, of having endangered the interests of national economy and of exporters, of having formed an organized crime group and of having attempted to sabotage the state budget and the de minimis aid.
Fiscal Council President Daniel Dăianu expects 2022 budget to be much delayed
The budget for 2022 will be much delayed, and this is not only for political reasons, Fiscal Council President Daniel Dăianu stated during a press conference on Tuesday. Mr. Dăianu also said that next year’s budget must signal the budget deficit’s reduction. As to rating agencies and fiscal-budgetary consolidation, Mr. Dăianu said that things were much less clear for 2022 and for the following years after some measures meant to keep budgetary expenditures under control had been taken in 2021.
Financial 
UniCredit will allow opening a current account with zero costs on Friday
UniCredit will marks BlackFriday for the third consecutive year, on 12 November, with special offers for individual and SME clients, which can be accessed exclusively online, within the limit of available offers. New retail clients can open current accounts in RON, euro or dollars with zero costs for the entire period of the contract or can access consumer loans with interests between 0% and 5.99% and special offers for credit cards from UniCredit Consumer Financing.
Allianz group obtained EUR 9.9 billion profit in the first nine months of 2021
German group Allianz, present on the Romanian market through insurer Allianz-Ţiriac, ended the first nine months of 2021 with EUR 7.26 billion revenues, up by 38.9% year-on-year, and with a EUR 9.9 billion profit, having thus recorded a 27.2% advance, according to the information provided by Allianz. On the property and casualty insurance segment, Allianz recorded EUR 47.7 billion revenues in the first nine months of 2021, 2.1% more than in the same period last year, while revenues in the life insurance area stood at EUR 56.8 billion, up by 7% year-on-year. In Romania, Allianz-Ţiriac ended the first half of 2021 with a volume of gross underwritten premiums of RON 763 million, 12% higher than the level recorded in the same period of last year.
Signal Iduna health insurance company takes over Ergo Asigurări and Ergo Asigurări de Viaţă
The Competition Council has authorized the transaction through which Signal Iduna, a health insurance company, takes over Ergo Asigurări and Ergo Asigurări de Viaţă, according to the information transmitted by the Competition Council’s representatives. Signal Iduna, part of the German group bearing the same name, has been activating on the Romanian life and health insurance market since June 2008. However, the company focuses more on the private health insurance market, but also offers life insurance and accident insurance products.
Investment 
Global automotive manufacturers to invest more than USD 500 billion in electric vehicles by 2030
Global automotive manufacturers plan to invest more than USD 500 billion in electric vehicles and batteries by 2030, thus stepping up investments aimed at keeping car buyers away from fossil fuel cars and at meeting the increasingly tough decarbonisation targets. Less than three years ago, a similar analysis indicated that automotive companies planned to spend USD 300 billion on electric vehicles and associated technologies.
Vlad Alexandru and Cristina Şucu invested over EUR 1 million in a play arena
Vlad Alexandru and Cristina Şucu, the two entrepreneurs who own two playgrounds in Bucharest, under the name Kiddo Smartplay, are to open the third play center, called Hype Arena by Kiddo, on 12 November 2021. The new adventure, gaming and extreme indoor sports park will operate inside Romexpo, building C1, and will spread on an area of 3,200 square meters. The investment in the project exceeded EUR 1 million.
GreenWeee is building a waste electrical and electronic equipment recycling plant
GreenWeee International, a company operating in the field of waste electrical and electronic equipment (WEEE) treatment and recycling, a member of Green Group, is to invest EUR 10 million in the construction of a new plant in Buzau and in the acquisition of several waste electrical and electronic equipment recycling installations. The unit will be located on Frasinu industrial platform, and construction works will start at the beginning of next year. The plant will become fully operational in Q4 of 2022, according to data transmitted by company representatives.
Cluj County Hospital’s Neurosurgery Department will be extended
The government approved, during Wednesday’s meeting, the technical-economic indicators for the reconfiguration and extension of Cluj County Hospital’s Neurosurgery Department. The investment has been estimated at over RON 214 million. The Ministry of Health has indicated that the investment project will be financed from the state budget, through the Health Ministry’s budget, as well as from other legal sources, within the limits annually approved for this purpose, according to public investment programs approved by law.
Legislative 
USR Senator Narcis Mircescu claims that the Romexpo Law must be stopped
USR Senator Narcis Mircescu claims that the Romexpo Law must be stopped and must not leave the Romanian Parliament because it is pure robbery of public money and a real estate hit. In his opinion, the Parliament is in a position to pass a law offering land whose market value has been estimated at around EUR 500 million for free. According to him, the Romexpo Law is inappropriate, even though the Constitutional Court of Romania said it was constitutional.
European News 
Draft of COP26 negotiations calls for more ambitious climate commitments by next year
On Wednesday evening, United Kingdom, host of the U.N. climate change summit in Glasgow, released a draft of the COP26 negotiation outcome which could be approved on Friday, at the end of the COP26 summit. The draft reminds countries that, under the Paris Agreement, they can make new and more ambitious climate commitments any time, and for the first time, a COP agreement calls on nations to phase out subsidies for coal and fossil fuels. The final version will be negotiated within the next two days.
Social 
USR decided that the green certificate should become mandatory for all employees
Save Romania Union (USR) claims that the adoption of the Green Certificate Law is a national emergency and will require the non-discriminatory application of the green certificate for all employees, regardless of whether they work in the public or private system. According to a press release issue by USR, this provision will be submitted to the Chamber of Deputies in the form of amendments to the draft law which has been recently voted on in the Romanian Senate.
Over one million of doses of Pfizer vaccine will arrive in Romania on Wednesday and Thursday
The National Committee for the Coordination of Anti-COVID-19 Vaccination Activities (CNCAV) has announced that 1,249,560 doses of vaccine from Pfizer/BioNTech will arrive in Romania on Wednesday and Thursday. According to a press release issued by CNCAV, the vaccines will be delivered by air and will reach the airports in Otopeni, Cluj and Timisoara. Transport to storage centers is ensured by the manufacturing company, including by land. The press release indicates that the vaccination process continues both in the centers in Bucharest and in the country.
Natural population growth in Romania was negative in September 2021
Natural population growth in Romania was negative in September 2021 (minus 6,988 people), the same as in September 2020 (minus 5,596 people), according to data published by the National Institute of Statistics (INS) on Wednesday. The number of live births was higher by 1,611 compared to the same month of 2020, while the number of people who died was 3,003 higher. Considering the first three main causes of death, there were 1,125 more deaths due to circulatory diseases in September 2021 compared to September 2020, 1,627 more deaths due to respiratory diseases, but 33 fewer deaths caused by tumors.