News

Daily Newsletter - 11 November 2022

Summary

FIC (2)
Macroeconomic (3)
Financial (4)
Investment (4)
Legislative (4)
European News (1)
Social (2)
FIC 
FIC proposals for unblocking the waste management

Romania continues to rank last in the European Union in terms of waste collection, recycling and recovery. In this context, the Foreign Investors Council (FIC), the organization that reunites the largest Romanian companies with foreign capital, has identified 18 difficulties in the application of waste legislation and has come up with several proposed solutions. FIC Board members, Paris Nikolopoulos and Mircea Moga coordinate FIC activities related to environmental protection.

FIC proposes solutions for the business environment

The solutions proposals of the business environment for the challenges in the field of waste management

FIC proposes solutions for the business environment

Romania ranks last in the EU in waste collection, recycling and recovery

FIC proposes solutions for the business environment

FIC proposes solutions for the business environment

FIC proposes solutions for the business environment

Foreign Affairs Minister met with representatives of Coalition for Romania's Development

The delegation of representatives of the Coalition for Romania’s Development (CDR) coordinated by Daniel Anghel (FIC Board member) met with Foreign Affairs Minister, Bogdan Aurescu on Thursday, 10 November. Participants discussed, among other things, how the business sector can collaborate with the Romanian Government to promote Romania’s accession to the Schengen area. Minister Aurescu appreciated CDR representatives’ interest and readiness in supporting Romania’s joining the border-free area and in taking complementary actions that add to the political, diplomatic and technical steps taken by Romanian authorities to achieve this objective.

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania 

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania 

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania 

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania

Press release - Ministry of Foreign Affairs Reception by the Minister of Foreign Affairs Bogdan Aurescu 

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania

Bogdan Aurescu, meeting with the representatives of the Coalition for the Development of Romania 

Minister Aurescu received the representatives of the Coalition for the Development of Romania; accession to Schengen 

The reception by the Minister of Foreign Affairs Bogdan Aurescu of the representatives of CDR

The reception by the Minister of Foreign Affairs Bogdan Aurescu of the representatives of CDR

Macroeconomic 
Romania to receive EUR 1.39 billion for energy efficiency
On Thursday, 10 November, the European Parliament approved the REPowerEU Plan to reduce energy dependence on the Russian Federation. Romania is to receive EUR 1.39 billion under the Plan. The REPowerEU Plan is a new pillar that will add to Member States’ national recovery and resilience plans (PNRRs) and will be dedicated to investments in the energy sector. These non-refundable funds will add to the approximately EUR 30 billion Romania already receives for the National Recovery and Resilience Plan under the European Recovery and Resilience Facility.
Romania ranks 31st out of 42 countries in Europe in terms of purchasing power
Romania ranks 31st out of 42 countries in Europe in terms of purchasing power, with an average of EUR 8,017 per capita in 2022, representing 49% of the European average, according to a study conducted by GfK. Romania is outranked by Hungary, with an average of EUR 8,751 (53.5% of the European average) and Poland, on the 29th place, with EUR 9,254 (56.6%). The Czech Republic fills the 22nd place, with a purchasing power of EUR 12,970 per capita, representing 79.4% of the European average.
Romania could record 4.5% economic growth in 2022
Romania could record 4.5% economic growth in 2022 and a 2.3% advance in 2023, according to a presentation held by Raiffeisen Bank’s Chief Economist Ionuț Dumitru during the 25th edition of the Romanian Banking Forum. He said that Romania had the second best performance in Europe, after Slovenia, having managed to recover all the declines recorded during the pandemic. According to the economist, consumption was the main economic growth driver.
Financial 
ING Bank launches new functionality in Home’Bank app
ING Bank Romania has announced that starting from November 2022, the bank’s clients will be able to split the bill digitally, using a new functionality introduced into the Home’Bank application, called Split the bill. This can be used for any type of common expense: at the restaurant, at the theatre, at the gas station, for travel and many more. The maximum number of payment requests is seven per day and the total amount of a request sent to a maximum of ten friends is RON 30,000.
Banks in Romania will continue to develop programs to increase the level of financial education
Banks in Romania will continue to develop programs to increase the level of financial education, as sustainable development depends on the level of education as well, according to dreptullabanking.ro platform, a campaign carried out by Romanian banks. The average financial literacy score among the more than 4,000 Romanians who tested their financial education knowledge within the "#Dreptullabanking brings you freedom of movement" campaign is 7.53.
Banca Transilvania is to launch Bank Friday campaign
On 11 November, Banca Transilvania is to launch Bank Friday, a new online banking shopping campaign. For one day, Bank Friday will come with the best interest rate since the beginning of the year on six- and twelve-month RON-denominated deposits, of 7.25% and 7.45%, as well as with benefits on personal loans, housing loans, shopping cards, car leasing and insurance, according to a press release. This year’s campaign, whose message is "Do I want or do I need?" and which has reached its eight edition, focuses on responsible consumption.
Aegon incurred EUR 206 million net losses in Q3/2022
Aegon incurred EUR 206 million net losses in Q3/2022, mainly driven by a non-economic loss on interest rate hedges in the US, according to a press release. The cited source indicates that the operating result stood at EUR 429 million, down by 11% year-on-year on a constant currency basis. Benefits from cost savings, growth initiatives and an improvement in claims experience are more than offset by lower fees due to adverse markets.
Investment 
Prime Batteries Technology in Cernica invests EUR 1 billion to increase capacity to 8 Gwh/year
European group EIT InnoEnergy Group is to become a shareholder of Prime Batteries Technology in Ilfov, the European giant’s representatives announced in Brussels on Thursday, 10 November. The Romanian batteries manufacturer would increase its annual battery production capacity to 8 GWh, an investment that would amount to more than EUR 1 billion. Prime Batteries currently has a lithium-ion battery production capacity in Romania of about 0.2 GWh annually.
Online stores in Romania invest 10% - 15% of their turnover in website software development
Online stores in Romania invest an average of 10% - 15% of their turnover in various website software developments in order to offer customers an improved shopping experience. This is a growing percentage, which will accelerate, and investments in the software area are to reach 15% - 20% of turnover within the next five years, according to estimates by TARA Interactive, a Romanian software development company.
Bosch continues to invest billions of euros in digitalization
Bosch remains on the offensive in its digital transformation. By 2025, the technology and services provider will have invested EUR 10 billion in digitalization and connectivity. Two-thirds of this investment will be directed towards the development and expansion of promising new technologies with a focus on sustainability, mobility and Industry 4.0, according to a press release.
Villar Group to invest EUR 50 million in high-tech logistics parks
The company Villar Group, listed on Tel Aviv Stock Exchange, is currently developing 100,000 square meters of modern logistics spaces in strategic locations and will continue its accelerated expansion in Romania, according to a press release. The cited source indicates that Villar Group is currently building a high-tech logistics hub in an area of maximum interest - the new Bucharest ring road, in Dragomirești-Vale, at kilometer 13 on the A1 highway. Here, the company has purchased a 160,000 square meter piece of land that can successfully accommodate build-to-suit projects and where up to 80,000 square meters of modern storage spaces can be built.
Legislative 
Ruling coalition leaders will come up with new OUG on energy to include new agreed measures
The leaders of the ruling coalition will come up with a new Government Emergency Ordinance (OUG) for the implementation of several recently agreed measures on energy. The draft law approving OUG 119 already includes some of those measures through the amendments adopted in committees. The draft law approving OUG 119 will be debated during the plenary session of the Chamber of Deputies, as the decision-making body.
Klaus Iohannis promulgated law on the placement of a QR code on monuments
President Klaus Iohannis promulgated the Decree on the promulgation of the law amending and completing the Public Monuments Law on Thursday, 10 November. The law provides for the installation of commemorative plaques dedicated to important personalities or events in places related to them, including on newly built buildings. The plaques would include a QR code that, once scanned, will redirect the user to a website managed by the Ministry of Culture, where they will find more information about the personality or event in question.
30% of candidates on local election lists will be women, according to a draft law
Minister for Family, Youth and Equal Opportunities Gabriela Firea stated on Thursday, while on a visit in Deva, that together with Marcel Ciolacu, the President of the Chamber of Deputies and of the Social Democratic Party (PSD), and with other MPs, she had submitted a draft law stipulating that 30% of candidates on local elections lists must be women. The same representation percentage would also apply in the case of state-owned companies’ Boards of Directors.
CCR has ruled that the package amending justice laws is constitutional
The Constitutional Court of Romania (CCR) has ruled that the package of normative acts through which the Parliament amended the justice laws this autumn is constitutional and has decided to reject as inadmissible and unfounded the challenges submitted by Save Romania Union (USR), the Alliance for Romanians’ Unity (AUR) and the Ombudsman regarding the law on the organization of the judiciary, magistrates’ statute and the law on the organization and functioning of the Superior Council of Magistracy. CCR’s decision is an important step towards the lifting of the Cooperation and Verification Mechanism, which would eliminate any objection to Romania’s accession to the Schengen area by the EU’s Justice and Home Affairs Council. Following CCR’s decision, the three normative acts amending the justice laws will be sent to President Klaus Iohannis for promulgation.
European News 
Romania obtains USD 3 billion US funding for two nuclear reactors
Romania announced Wednesday (9 November) that the United States would provide funding worth more than USD 3 billion for the construction of two new nuclear reactors in the eastern European country, which is expected to commence early next year. The funding will be granted by the Washington-based Export-Import Bank (EXIM), an export credit agency, enabling Romania to cover "about a third of the amount necessary for the construction of two reactors" at the Cernavoda plant, Romanian Prime Minister Nicolae Ciuca said. The rest of the needed funding will come from other financing, Ciuca added, without giving further details.
Social 
Six out of ten companies will give Christmas bonuses to employees
70% of the companies that participated in the latest survey conducted by a well-known recruitment firm said that they would offer holiday bonuses to their employees in 2022. 7.5% firmly answered that they had not allocated a budget for such benefits, while 22.5% did not yet know whether they would grant holiday bonuses. 64.3% chose to offer money as a Christmas bonus, which is also the most popular incentive among employees. 43% will organize an end-of-year party for the entire team, and 28.6% of employers will purchase baskets containing seasonal products for all employees.
19,774 deaths were recorded in September 2022
19,774 deaths (10,382 males and 9,392 females) were recorded in September 2022, 3,370 fewer (1,781 males and 1,589 females) than in August 2022. Moreover, 17,460 children were born in September 2022, 688 fewer than in August 2022, according to data published by the National Institute of Statistics (INS) on Thursday, 10 November 2022.