News

Daily Newsletter - 15 April 2019

Summary

FIC (1)

FIC: business environment in Romania has worsened

The most recent results of the Foreign Investors Council’s (FIC) Business Sentiment Index raise some important worries and leave open a big question mark which can be answered with the next survey in the second half of 2019. Fully 85% of respondents say the business environment in Romania has worsened, the highest number on record yet. By looking at these results FIC believes there is a need to sound an early warning that clouds may be gathering on the horizon and the complete lack of predictability FIC has seen in past years is starting to take its toll. Although FIC does not know yet how persistent the decline of sentiment among the investors is, FIC believes the window for easy reforms and fiscal stimulus is closing. If Romania is to keep growing at the current rate, there needs to be a serious change in the legislative process and comprehensive dialogue with the business environment is needed. Important legislation must not be passed without dialogue and impact assessments, infrastructure needs to be built, the administration digitalized and reformed and businesses need to move higher up the global value chain.


Over 43% of Romania’s GDP is generated by foreign-owned companies

FIC members concerned about business environment

FIC members concerned about business environment

Dark clouds gather over Romania's economy

FIC: Investors more reluctant about business development this year

Record number of investors see bad year

Foreign investors complain

Local business environment worsened

Dark clouds gather over Romania's economy

Trouble in Romania's business environment

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Macroeconomic News (3)

Cabinet preparing to borrow another EUR 4 billion

The Ministry of Finance (MFP) has a total borrowing plan worth EUR 8.25 billion for 2019 and 2020. The government has already borrowed EUR 3 billion, through an issue of eurobonds launched in early April. The Medium Term Notes program is currently capped at EUR 27 billion, but the Cabinet wants to raise the cap to EUR 31 billion.

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Industry up 1.9%

The industry, a field accounting for almost a quarter of the national economy, saw its output increase by 1.9% in February, compared to the corresponding month of 2018, according to data released by the National Statistics Institute (INS) on Friday.

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Teodorovici offers assurances

The Minister of Finance, Eugen Teodorovici, headed the European Union's delegation to the International Monetary and Financial Committee meeting, which was held in Washington on Friday. During his meeting with Paul Thomsen, head of the IMF's Europe division, Teodorovici promised that Romania would keep its budget deficit below 3%.

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Financial News (2)

BCR is selling its headquarters

BCR is selling the "Generala" Insurance Company headquarters, a historical building that has been defining BCR's own image for decades. The building is worth an estimated EUR 20 million and is most likely to be turned into a luxury hotel by its future owner.

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Current account deficit up 34% in two months

The current account deficit increased to EUR 568 million in the first two months of this year, up 33.6% compared to the first two months of 2018. The RON/EUR exchange rate was RON 4.75 per EUR on Friday, April 12, down 2% since the beginning of the year.

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Investment News (3)

Delgaz Grid invests more than RON 1.7 million in consolidation

Delgaz Grid, operator of the natural gas distribution network in northern Romania, announced that it would spend more than RON 1.7 million in consolidating the terrain around the Breazu station. The area had been the site of a landslide, which endangered the energy supply of 9,000 Iasi county residents.

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EU financing to be discussed after Brexit

Decisions regarding EU funding for the 2021-2027 period have advanced during the Romanian presidency of the EU Council, but not enough to reach an agreement at the European Council meeting scheduled for June. Decisions have been taken regarding 25% of priorities, with the rest of the talks falling to the next Presidency - according to information presented on Friday.

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Infrastructure contracts signed

The Minister of Transport and Prime Minister Dancila announced on Sunday, at a press conference held at the Government's headquarters, the signing of three infrastructure contracts regarding Section I of the Sibiu-Pitesti Highway, the Bucharest Beltway and Trunkline 5 of the Bucharest subway.

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Politics (2)

PM Dancila attends China-CEE summit

Prime Minister Viorica Dancila attended on Friday the 16 + 1 China - Central and Eastern Europe Summit this year in Dubrovnik, Croatia, the same week the EU-China meeting took place in Brussels. The official delegation of Romania includes the Minister of Trade Radu Oprea, the Minister of Foreign Affairs, Melescanu, and the Deputy PM Viorel Stefan.

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Tariceanu: "I want Dragnea to stay free"

Calin Popescu-Tariceanu, leader of ALDE, stated in Iasi that he would prefer to see Dragnea staying out of prison. The issue of a joint candidate in the presidential election will be discussed by the PSD and ALDE once the European Parliament election is over.

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