News

Daily Newsletter - 13 March 2019

Summary

Macroeconomic News (4)

CPC Study: In 5 years, Romania will need more than 500,000 additional workers

 Romania's economy will need more than half a million people on the labor market in five years, a number that the domestic labor resources cannot match unless a series of measures are quickly adopted, according to a study by the Concordia Employer Confederation and the National Institute of Economic Research (INCE) of the Romanian Academy. The data showed that about 2 million active individuals are neither working, nor studying, while the number of pensioners is rapidly approaching that of active workers.

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Trade deficit up 62% in January

The trade deficit amounted to EUR 1.2 billion in January, a 62% surge from the corresponding month of 2018. Exports grew 1.6%, the lowest pace in three years, while the gap between imports and exports widened to 7.6%. The country's economy has abandoned the export focus that brought it out of the financial crisis in order to focus on domestic consumption and imports.

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AmCham: Increasing salaries above productivity could generate inflation

 Although local salaries are among the lowest in the European Union, salary increases should follow closely the productivity dynamic, which requires a gradual approach. Aggressive increases could generate inflation and foreign deficits, which are usually corrected by depreciating the national currency. This, in turn, erodes the Romanians' purchasing power and quality of life.

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Annual inflation rate up in February

The annual inflation rate increased from 3.32% in January to 3.83% in February, according to the National Statistics Institute (INS). Food prices jumped 4.46% in February, with potatoes surging 21%, while non-food goods became 3.74% more expensive.

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Financial News (3)

Senator Daniel Zamfir called four former bank treasurers to hearing

Senator Daniel Zamfir (ALDE) called four former bank treasurers to the hearing held by the Economy Commission yesterday. The four - Bogdan Mihoc (UniCredit Tiriac Bank), Cristian Sporis (Raiffeisen Bank), Florin Catu (ING Bank) and Dan Cristea (BCR) - were treasurers in 2008, the year when the senator claims the ROBOR rate was manipulated by the banks, with BNR's assistance. Of the four, only Dan Cristea attended the hearing.

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Tariceanu: "We have a backup solution"

The President of the Senate, Calin Popescu-Tariceanu, said there's a backup solution to the Decree 114 situation: delaying the bill's coming into force, unless the amendments are ready and passed by March 31.

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BRD-SocGen is still the top player of the state bond market

BRD-SocGen is still the top player of the state bond market, having overtaken ING Bank last year. ING remained the second biggest player, followed by BCR, UniCredit Bank, Citibank, Banca Transilvania and Raiffeisen Bank.

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Legislative News (2)

Senate passes bill raising mandatory education to 15 years

The Senate passed on Monday the bill that extends the mandatory education system from 11 to 15 years. The bill includes the last two years of preschool education, as well as the last two years of high school into the mandatory period. Since the Senate had the final say, the bill is now on its way to President Iohannis.

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Minister of Transport says procurement regulations to change

The Minister of Transport, Razvan Cuc, said he wants the procurement regulations changed in order to speed up the implementation of new infrastructure projects. "I understood and understand the discontent, which is why I'm putting more pressure on road workers," said Cuc.

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Politics (3)

Iohannis: Our citizens want politicians to give democratic citizenship a contemporary content

President Klaus Iohannis stated on Tuesday that Romanian citizens want politicians to give democratic citizenship a contemporary content.

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Nicusor Dan: "I should be the USR-PNL-PLUS candidate for Bucharest mayor"

Having returned temporarily to the Save Romania Union (USR) in order to help the 2020 Alliance get registered in the European Parliament election, Nicusor Dan spoke with Adevarul Live about his political plans and the backstage maneuvers undertaken to register the alliance. "The only chance that right wing parties have - USR, PLUS, PNL - is to back a joint candidate for Bucharest mayor and I think I should be that candidate," said Dan.

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Viorica Dancila: "President Iohannis is out of control"

Prime Minister Viorica Dancila reacted to President Iohannis's decision to sign only the social security budget by saying that the president is out of control.

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Social (2)

More than a third of all EU mothers below the age of 14 are Romanian

929 teenagers between the ages of 10 and 14 gave birth in 2017 and more than a third of them are Romanian (383), according to Eurostat. The number is up compared to 2016 (332) and 2015 (359), which indicates a lack of effective policies addressing this situation.

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Romanians become aware of environment

Romanians are starting to pay attention not only to the quality of their lives, but also to the impact their actions have on the environment. The number of people who reuse plastic bags and recycle is up in 2019, according to a survey by iSense Solutions.

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