A vital criterion for
large investors remains the stability, predictability, and transparency
of the legislative framework, as also highlighted by the latest edition
of the Business Sentiment Index (BSI) published by the Foreign
Investors Council. This criterion was not met for the measures taken by
Romania in the energy domain, most of them being adopted in 2022
through emergency ordinances without the necessary time to consult with
the parties involved. Although important market players are making
major efforts to adapt to new regulations, compliance and
implementation are becoming increasingly burdensome given the tight
deadlines, multiple changes over the past year and imperfections in the
legislation, and thus the functioning of the market is affected. FIC
reiterates the need for a predictable legislative framework and
consultation with the business environment to reach the best solutions
to ensure energy security, protecting vulnerable consumers and the
viability of all actors involved in the energy sector, and at the same
time, member companies’ openness for dialog with state authorities to
provide analyses and the expertise of professionals from private
sector. We continue to be the partners of the Government in identifying
sustainable measures to overcome the energy crisis, but also to ensure
Romania’s economic development.
The National Institute of Statistics (INS) has revised its GDP growth
estimates for Q3/2022 slightly downwards, to 1.2%, compared to the
previous three months. Previously, the INS had reported, on 8 December
2022, that GDP growth in Q3 was 1.3% compared to Q2. According to the
second flash data published by INS on Thursday, 12 January, GDP in
Q3/2022 grew by 3.8% on a gross basis and by 4.6% on a seasonally
adjusted basis year-on-year. The figures are also lower than those
included in the previous version of INS’s report, which indicated that
GDP had grown by 4% in the third quarter of 2022 on a gross basis and
by 4.7% on a seasonally adjusted basis.
The average net wage in November was RON 4,141, up by RON 133 (+3.3%)
against October 2022. The highest value of the average net wage was
recorded in information technology service activities, including
computer service activities (RON 10,329), and the lowest one was
reported in hotels and restaurants (RON 2,258), according to data
published by the National Institute of Statistics (INS) on Thursday.
The average net wage in November 2022 grew by 13.6% year-on-year.
The World Economic Forum’s annual Global Risks Report highlights the
cost of living crisis as the biggest short-term risk facing the world
right now, with climate change as the biggest long-term threat. The
report, which has been published ahead of the Davos summit for the last
17 years, factors the views of 1,200 figures across the private and
public sectors. This year’s edition — produced with professional
services firm Marsh McLennan and Zurich Insurance Group — said that
Russia’s war in Ukraine and the Covid-19 pandemic had propelled the
energy crisis, food scarcity and inflation as the most pressing global
issues.
Ministry of Finance borrowed RON 1.55 billion from banks on Thursday,
12 January 2023, through two auctions of government securities, at
yields of 7.60% and 7.49% per year. In the first auction, the Finance
Ministry reopened a bonds issue maturing in 2034 and borrowed RON 748
million, 50% more than the programmed amount of RON 500 million, at an
annual interest rate of 7.60%. The total volume of demand was RON 1.02
billion and the coupon rate was 4.75%.
Patria Credit, a non-banking financial institution specializing in
financing farmers and micro-enterprises, expects to record advances in
2023, and estimates an increase in the balance of financing of 20% or
more for the entire year 2022, with a RON 160 million portfolio, Raluca
Andreica, General Manager of Patria Credit IFN, stated during the ZF
Live business program. She also pointed out that 2022 had been a
difficult year in terms of financing due to the rising funding costs.
OMNIASIG Vienna Insurance Group has taken one more step towards digital
development. The company has thus launched the option of carrying out
the car’s risk inspection using 100% digital means, upon contracting a
Casco optional car insurance policy. Clients can now carry out their
own risk inspection remotely when taking out a Casco policy, in just a
few minutes, using their mobile phone via an intuitive, easy-to-use
app, without assistance from an OMNIASIG representative.
Bricks manufacturer Cemacon Cluj-Napoca (stock exchange symbol CEON)
has informed the capital market about the launch of procedures for Euro
Cărămida’s acquisition, a company activating on the ceramic building
blocks market headquartered in Bihor County. CEON shares, listed on the
main segment of Bucharest Stock Exchange, are 78% owned by Pavăl
Holding, the investment vehicle owned by brothers Adrian and Dragoș
Pavăl, founders of Dedeman. PIF Industrial owns 16.8% of the share
capital, while the rest is held by other shareholders.
Packaging manufacturer Electric from Focșani, owned by the Buzăianu
family, plans to build a factory to manufacture trash bags for
household use, an investment estimated at EUR 20 million, for which it
is looking for a partner. Electric owns a factory in Focșani, where 160
employees operate more than 30 production lines, and where it
manufactures bottles, flasks, caps, shrink-wrap, bags and sacks from
biodegradable materials, as well as steel or aluminum molds, full-size
3D prototypes or 3D scans.
The total volume of transactions with commercial real estate assets
worth at least EUR 5 million stood at around EUR 1.25 billion in 2022,
up by 40% year-on-year, according to data from JLL Romania consultancy
firm. Prime yields for the office market in Romania grew from 6.75% to
7% in Q4/2022, while those on the segment of shopping centers and
industrial spaces stayed at 7.25% and 7.50% respectively.
VAT for photovoltaic panels and heat pumps will be reduced from 19% to
5%. The corresponding law was promulgated by President Klaus Iohannis
on Thursday, 12 January 2023. The VAT reduction will boost investments
in small production units and consumers’ energy efficiency, and will
lead to new prosumers who will be able to reduce their energy bills and
transfer the surplus production into the national energy system.
On Thursday, President Klaus Iohannis promulgated the draft law
establishing 2023 as "Dimitrie Cantemir and Ciprian Porumbescu Cultural
Year". The Parliament, the Presidential Administration, the Government,
the central and local public administration authorities, as well as the
public institutions subordinated to or coordinated by them, may
allocate funds from their own budgets to organize or to logistically
and/or financially support cultural, artistic and educational events or
promotion programs, within the limits of the approved budget
allocations.
EU lawmakers have given the green light to amend the European
Parliament’s internal rulebook and give the European Public
Prosecutor’s Office powers to demand the lifting of legal immunity for
EU lawmakers suspected of grave offences. The changes were adopted
unanimously on Thursday (12 January) by the Parliament’s Constitutional
Affairs committee and are expected to be finalised during next week’s
plenary session in Strasbourg. However, observers have already
suggested that the changes were more cosmetic than substantial to have
a really transformative effect.
The Government has announced that the aid from European money that will
allow vulnerable people to pay their energy bills amounts to RON 1,400,
and the money will be granted in two tranches, in February and
September. This will cover part of people’s energy costs, regardless of
their nature: electricity, heating, gas, gas heaters, firewood, fuel
oil, pellets and other heating materials.
Seven out of ten Romanian employees say they would change their current
job for a higher salary, and almost three out of ten would quit their
current job for more job security, according to a survey conducted by
MKOR Consulting. The data shows that employees have enjoyed job
stability over the past 12 months, and optimism continues into the new
year, with more than half of participants saying they had no reason to
worry about their job in 2023.
Nearly 9 out of 10 (89%) participants in an international survey
conducted by Beko admitted they ignored the best practices for saving
energy at home, even though 80% said they knew how they should use
their electrical household appliances in an energy-efficient way. The
survey analyzes consumer attitudes and behaviors related to energy
efficiency in several countries and is part of the company’s latest
endeavor to learn more information about the use of electrical
household appliances.