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.
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.
The number of new companies with foreign investments founded in the
first nine months of 2022 in Romania grew by 33% year-on-year, having
reached 5,523, according to data from the National Trade Register
Office. New companies’ foreign capital decreased by 6.2% per year, to a
total of USD 31 billion (EUR 31.66 billion) during the aforementioned
period. Moreover, 692 foreign-funded companies were registered in
Romania in September alone, up by 25% against the previous year. The
results of the FIC Business Sentiment Index, autumn edition, show that,
despite the current challenges (inflation, energy market crisis and
utility prices, geopolitical context, supply chain bottlenecks,
available and adequate labour force), investors’ perception of the
economic environment in Romania is moderately optimistic.
Annual inflation rate slightly decreased in October, to 15.3%, after
having reached a peak of 15.9% in September, considering that food
prices grew by 20% compared to October 2021 and non-food goods were 14%
more expensive, according to data published by the National Institute
of Statistics (INS) on Friday. Furthermore, prices of services rose by
8.3%. Consumer prices increased by 1.3% in October compared to
September. The biggest year-on-year price increases were recorded in
gas - 40%, electricity - 27%, plane tickets - 28%, and, among food
products, in sugar - 62%, oil - 43%, butter - 40%, potatoes, - 40%,
flour and cornmeal - 34%, milk and cheese - 27-28%, bread - 26%, fish -
20%.
The European Commission expects Romania’s real GDP to grow by 5.8% in
2022, a major upward revision from the 3.9% summer forecast and the
2.6% spring estimate. The data comes considering that Romanian economy
expanded by 5.7% year-on-year in H1/2022. In particular, private
consumption and investments grew strongly as pandemic-related
restrictions were lifted, allowing pent-up demand to catch up. In
addition, a strong labor market with higher employment and wage growth
supported disposable incomes, as did government measures to mitigate
the impact of high energy prices.
The average net wage in economy stood at RON 4,003 in September, up by
RON 70 (1.8%) against the previous month. The highest net salary was
recorded in activities related to the manufacture of coke and oil
products (RON 16,085) and the lowest one was reported in hotels and
restaurants (RON 2,233), according to data published by the National
Institute of Statistics (INS) on Friday, 11 November. In the public
sector, the average net wage grew in September 2022 compared to the
previous month in education (+8.8%, following the resumed hourly pay
for teachers) and in public administration (+1%). Moreover, average net
earnings in healthcare and social assistance slightly decreased
compared to August 2022 (-0.4%).
Omniasig will once again insure international airline Tarom’s fleet
after having won the tender for the provision of Casco optional
insurance policies for the aircraft fleet and of insurance policies
targeting liability towards passengers, cargo and third parties,
according to information transmitted by company representatives. The
Casco policy, which covers all risks, including spare parts and
equipment, and the civil liability policy will enter into force on 1
December 2022 and will be valid until 30 November 2023, Omniasig
representatives have also indicated.
Allianz Group, the main shareholder of Allianz-Tiriac insurance
company, ended the first nine months of 2022 with EUR 116 billion
revenues, up by 5.3% year-on-year, while its operating profit reached
EUR 10.2 billion, up by 3.2% compared to the first nine months of 2021,
according to Allianz. Supported by the good performance of the general
insurance segment, Allianz’s operating profit and net revenues
demonstrate the benefits of global scale and diversification as well as
the group’s customer-centered strategy, Allianz SE CEO Oliver Bäte has
transmitted.
OTP Bank Romania launched the 2022 Black Friday campaign for
individuals and entrepreneurs on Friday, 11 November. It offers a
promotional interest rate for a limited number of clients, namely
9.75%, on three- or six-month term deposits. There are five hundred
places available within the promotion. Entrepreneurs benefit from zero
costs for the entire duration of the contracts signed under the
campaign.
BT Group’s consolidated net profit stood at RON 1.678 billion at the
end of Q3/2022, of which RON 1.441 billion represented the bank’s
profit. The net profit of subsidiaries and equity holdings amounted to
about RON 237 million, according to a press release. The cited source
also indicates that Banca Transilvania Financial Group’s assets reached
RON 141 billion, up by 6.6% against the level recorded at the beginning
of the year. Banca Transilvania’s loans grew to RON 63.2 billion.
Compared to the beginning of the year, net loans to legal entities
increased by nearly 32%, to RON 27.2 billion and net loans to
individuals were up 7.4%, to RON 27.6 billion.
The Domnești Passage in Bucharest was opened to traffic on Friday. It
required an investment of over RON 90 million, VAT not included, which
has eliminated a traffic bottleneck in Bucharest. Transport Minister
Sorin Grindeanu stated that the opening of the passage had been awaited
for several years. The overpass from Domnești, configured as a
suspended roundabout, is located at the crossroads between Prelungirea
Ghencea Street - DJ602 County Road and Bucharest Ring Road.
Continental has finalized construction works on the third expansion of
its electronic components plant in Timişoara, following an
approximately EUR 40 million investment, according to a press release.
With the new investment, the production area will grow by more than
7,000 square meters, which means an over 60% increase in space (the
production area will reach about 18,000 square meters). Moreover,
parking spaces, a technical area, offices and a green area have also
been added.
Zimmer Biomet, a US medical technology company, is to open a branch in
Romania and plans to recruit minimum 25 people in the first year. The
manufacturer has announced EUR 3.5 million investments for 2023. Zimmer
Biomet Romania has leased a space in the Paris building in Sema Parc, a
project developed by River Development. Zimmer Biomet Holdings was
founded in 1927 in Indiana, USA, has offices in 31 countries and
operations in more than 100.
The Government met on Friday, 11 November to approve the Emergency
Ordinance regulating electricity prices. Prime Minister Nicolae Ciucă
had transmitted on Thursday that the price of RON 1/KW would be
maintained for SMEs and large consumers would pay RON 1.3/KW and had
indicated that those technical elements were to be included in a draft
Emergency Ordinance. The draft Government Emergency Ordinance (OUG)
amends OUG 27/2022 regarding measures applicable to end-consumers on
the electricity and gas market for the period 1 April 2022-31 March
2023.
Coal and gas-fired electricity producers in Romania, who are obliged by
EU legislation to purchase greenhouse gas (CO2) emission certificates,
will benefit from subsidies on the costs incurred with the acquisition
of certificates corresponding to electricity sales made at a regulated
price of RON 450/MWh, based on the centralized energy purchase
mechanism introduced by the Government through an emergency ordinance
from 1 January 2023 until 31 March 2025. Energy producers are currently
surcharged through the so-called "contribution to the Energy Transition
Fund" for everything they cash from wholesale sales made at prices
above RON 450/MWh, for the part exceeding this price.
Prime Minister Nicolae Ciucă has announced that the Government is to
approve an emergency ordinance that will standardize bonuses for
personnel in public institutions and/or authorities working on projects
financed from European funds. He has indicated that those working with
funds from the National Recovery and Resilience Plan (PNRR) are paid
from the state budget, while the money for persons working with
cohesion funds is ensured through those European funds.
The EU’s cyber defense policy was presented by the EU executive and
diplomatic branches on Thursday (10 November) as a response to rising
geopolitical tensions resulting from Russian aggression in Ukraine. The
cyber defense policy is a strategic document intended to strengthen
European cybersecurity capacity, boost military and civilian
cooperation, close potential security loopholes, reduce strategic
dependencies and develop cyber skills.
Childcare insertion incentives paid in September 2022 totaled RON 65.28
million, the average amount granted having been RON 756.14, according
to data centralized by the National Agency for Social Payments and
Inspection (ANPIS). There were 86,343 beneficiaries of childcare
insertion incentives registered in September, the most being in
Bucharest - 12,263 and in Cluj - 4,249, Timiș - 4,114 and Iași - 3,790
counties. The highest average amount paid in May (current entitlements)
was recorded in Botoșani County – RON 894.46, and the lowest one was in
Bucharest - RON 684.14.
The total number of pensioners who benefitted from social allowance was
1,145,877 in October 2022, 1,096 fewer than in the previous month,
according to data centralized by the National House of Public Pensions
(CNPP). Of these, 1,026,421 were pensioners from the public system and
119,456 were pensioners from the former farmers’ pension system. In the
case of public system pensioners, the average amount of the allowance
paid from the state budget was RON 375. The highest values were
recorded in Bistrița-Năsăud Count (RON 434), Maramureș County (RON 430)
and Cluj County (RON 417).