News

Daily Newsletter - 11 October 2018

Summary

FIC (1)

Romania no longer competitive

The Foreign Investors Council (FIC) believes that Romania should not jeopardize its competitive advantage and be perceived as lacking fiscal competitiveness because of inconsistent policy and regulatory changes. FIC members urge the Government to maintain a stable fiscal framework and to be transparent about future changes. At the same time, FIC believes that the public administration and the private sector need to work closely together to improve the Romanian labour market before it becomes a major impediment to further development..

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Macroeconomic News (3)

BNR: Inflationary pressures are driven by negative investment, exports and labor market

The pressure pushing salaries up helps fuel the inflation rate, even as the nation witnesses "an unexpectedly sudden drop in consumer demand". The inflationary pressure is joined by the negative contribution of investment and net exports, according to the transcript of the October 3 meeting of the BNR board of directors.

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Trade deficit up 14% in eight months

Romanian goods exports jumped 9.7% in the first eight months of this year, compared to the corresponding period of 2017, reaching a total of EUR 45 billion. However, imports amounted to EUR 53.99 billion, which resulted in a trade deficit of EUR 8.98 billion, up 14% on an annual basis.

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INS reconfirms 4.1% growth rate

The National Statistics Institute (INS) has reconfirmed the 4.1% growth rate estimate for the national economy in the second quarter of the year. The figure was first put forward in mid-August. According to the final report, the GDP went up 4.1% in gross figures and 4.2% in figures adjusted for season and working days.

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Financial News (2)

Debtor relief extension reported out favorably

The Senate's Economy Commission reported out favorably the bill extending debtor relief to Prima Casa loans, according to the announcement made by Senator Daniel Zamfir (ALDE).

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BCR launches Grant Management Account

BCR announced the launching of the Grant Management Account, a product designed for freshly established companies that apply for grants in order to finance projects that require double management. The special account can be used for the joint management of subsidies by the beneficiary and the administrator.

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Investment News (1)

Bucharest plant to boost Policolor output by 130%

Policolor, one of the biggest players of the national paint and lacquers market, announced the completion of the first construction stage at its new plant. The production facility is being built on a 2.5-hectare property located west of the Capital. The plant will be completed next April and is expected to boost the company's output by 130%.

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Legislative News (2)

Government adopts pension bill

The Government adopted the new pension bill on Wednesday, featuring a string of pension point increases. The law will come into force fully only in 2021, when all pensions will be based on a reference point of RON 1,875.

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Minister Tudorel Toader says magistrate crime investigation department is operational

The Government adopted on Wednesday the decree featuring measures designed to bring to operational status the department tasked with investigating the crimes of magistrates, according to Minister Tudorel Toader. The Minister said that the new measures had to be adopted via decree because the judiciary bills have already been signed into law.

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Politics (2)

PM Dancila: Referendum results express citizen will

"The Government has made every effort to organize the referendum, given its duties under the law. Citizen consultation is an essential feature of a democratic society and the results of this referendum are an expression of the citizens' will on the issue," said Prime Minister Viorica Dancila.

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President Iohannis: Romania passed an important test

Culture and education are the main shields against powerful attempts to manipulate public opinion, according to President Klaus Iohannis. The president added that Romania had a major test to pass in 2018, the year when the country celebrates the 100th anniversary of its union.

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Social (2)

Free school supplies for 360,000 students

More than 360,000 students, from kindergarten to the 8th grade, will be provided with free school supplies in the 2018-2019 academic year, according to a project launched by the Ministry of Education. In order to qualify for this program, the students must be enrolled in state education units and their families' average net monthly income must not exceed 50% of the minimum gross salary.

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Transporters to go on strike

The companies that provide passenger transportation services are threatening to go on a general strike tomorrow. The companies are unhappy with an order issued by the Minister of Transport regarding the organization and operation of road transport services.

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