Economic sentiment is slightly improving in Central Europe, even though
risks such as inflation, supply chain problems and rising energy, raw
material and labor costs continue to affect companies, according to the
Deloitte Private Equity (PE) Confidence Survey. The analysis also
indicates that 79% of participants expect the economic context to
worsen in the following months, down from 86% in the summer of 2022.
Industrial production decreased by 5.4% on a gross basis and by 6.1% on
a working-day and seasonally adjusted basis in January 2023
year-on-year, according to data published by the National Institute of
Statistics on Tuesday, 14 March. However, production grew both as a
gross series (3.5%) and as a working-day and seasonally adjusted series
(2%) in January 2023 compared to December 2022.
Reducing indoor climate risks could bring EUR 6.3 billion economic
benefits to Romania by 2050, while all EU member states could save up
to EUR 608 billion, according to the Healthy Homes Barometer 2022 study
conducted by windows manufacturer Velux in collaboration with research
company RAND Europe. The study indicates that unhealthy buildings leave
huge environmental footprints and are costly to the whole community,
not only through wasted energy, but also through increased healthcare
costs and decreased productivity.
New RON-denominated corporate loans resumed growth at the beginning of
the year, having exceeded RON 3 billion in January, after having
dropped below this level in the last quarter of 2022, following the
increase in interest rates, the inflation, the war at the border and
the uncertain economic context, which impacted companies’ plans to
invest using RON-denominated financing from banks. Banks on the
Romanian market granted RON 3.3 billion new RON-denominated corporate
loans in January 2023, up by 17.9% both against the level in December
2022 and the volume recorded in January 2022.
Libra Internet Bank’s shareholders approved, during the General
Meeting, the re-election of Radu Ghetea, Ionel Umbres, Emilian
Bituleanu and Eugen Goga as directors of the bank, for a four year
period, until 2027. The terms of the four directors expire in 2023.
Radu Ghetea is Chairman of Libra Internet Bank’s Board of Directors and
Honorary President of the Romanian Association of Banks. Prior to this,
he was also President of Alpha Bank Romania in 2007 and President and
CEO of CEC Bank from 2007 to 2018.
Galati County will have the largest wind farm in Romania. The company
Hoopeks International has obtained the technical approval for
connecting a 629 MW wind power project to the national power grid. The
investment amounts to EUR 500 million. The wind farm would spread on
about 13,000 hectares. An important first step within the project has
already been taken as the County Council has approved the preliminary
study.
Raiffeisen Bank International and Raiffeisen Bank Romania have granted
a EUR 40.5 million loan to a company part of the Shikun and Binui
Energy group from Israel for the construction of a photovoltaic power
plant with a total installed capacity of about 70 MW in Satu Mare.
Design works and the procurement of the main equipment have already
started and commissioning is planned for the second quarter of 2024,
according to a press release issued by Raiffeisen Bank.
Volkswagen Group’s financial situation is very good, the company’s CEO
Oliver Blume and CFO Arno Antlitz announced during the group’s annual
conference. With the help of Porsche listing, which has entailed a
strong increase in liquidity, VW AG wants to massively invest in
profitable growth directions. The next four years will bring EUR 180
billion investments for Volkswagen AG, especially in the
electrification and digitalization areas. The battery production
strategy is the main direction of investments, but also the expansion
of the company’s presence in North America, where a batteries plant and
at least one automotive plant will be built.
Poultry meat producer Oncos Transilvania from Cluj County has finalized
a EUR 500,000 investment in a smart lighting project carried out in
partnership with E.ON Energie Romania, implemented in 45 of the
company’s units in Cluj and Sălaj Counties. The new system will reduce
energy consumption by more than 70% and the carbon footprint by more
than 230 tons/year. The traditional lighting fixtures in the 45 units
in Corușu, Gilău, Jucu, Lomb (Cluj County) and Panic (Sălaj County)
farms have been replaced with 1,800 modern lighting systems with
built-in LEDs.
The Senate voted, during the plenary session on Tuesday, with 80 votes
in favor, no votes against and 13 abstentions, the amendment to the
Whistleblowers Law, necessary following the European Commission’s
request, in order to unblock payment request number 2 of the National
Recovery and Resilience Plan (PNRR). The Senate is the first notified
chamber and the amendment will now be sent to the Chamber of Deputies
for a final vote.
The Chamber of Deputies has adopted, as the decision-making body, a
draft law approving Government Emergency Ordinance 77/2021, which
establishes the National Forestry Guard, by reorganizing the current
Forestry Guards, according to their main duties, namely, the control of
the forestry and hunting regime and the endorsement and implementation
activities. Each of the Forest Guards, as set out in the Annex, shall
be led by a Chief Inspector, a senior civil servant, who has the status
of tertiary authorizing officer.
The Chamber of Deputies has adopted, as the decision-making body, a
draft law aimed at preventing the deterioration of rolling stock, a
component of county roads, as well as at preventing the degradation of
public space next to the roadway and parking spaces. According to the
draft law, local public authorities have the obligation to maintain
ditches, gutters, bridges, plantations, pavements, platforms and the
like located on public road sections crossing rural localities. The law
will now be sent to promulgation.
The Chamber of Deputies has adopted, as the decision-making body, a
draft law approving the signing of the Support Agreement between the
Romanian State and Societatea Națională Nuclearelectrica S.A. for the
Project of Units 3 and 4 from Cernavodă Nuclear Power Plant. The law
will now be sent for promulgation. According to the explanatory
memorandum, the Agreement aims to establish the effective methods of
cooperation between the parties, by setting certain commitments and
obligations for the Romanian State, regarding the implementation of the
necessary measures in order to ensure the financing of the project, the
implementation of support measures, including legislative measures.
EU finance ministers agreed on a common position for reforming European
fiscal rules, closely aligning themselves with the European
Commission’s approach of focusing on medium-term country-specific
fiscal plans. While the reference values from the EU treaties remain
unchanged – at a maximum public deficit of 3% of GDP and a debt level
of 60% of GDP – the 60% rule will be less relevant and the rules will
be accompanied by medium-term plans that should enable more
investments.
Food vouchers, gift vouchers, cultural vouchers, as well as nursery and
holiday vouchers could be granted in virtual format as well, not just
electronically on a physical support, according to a draft law
submitted to Parliament on Tuesday, 14 March. Liberal (PNL) MP Maria
Gabriela Horga has stated that introducing the possibility of issuing
virtual value cards will also have a positive impact on the environment
by reducing the production of plastic, reducing the resources used to
transport physical cards and reducing greenhouse gas emissions.
Minister of Investments and European Projects Marcel Boloş stated on
Tuesday, 14 March, that the increase in the retirement age was
stipulated in the National Recovery and Resilience Plan (PNRR),
pointing out that a decision would be made within the ruling coalition,
given that it is a milestone with "extremely high impact" on the
population. Former Labor Minister Raluca Turcan has pointed out that
there is no draft law proposing an increase in the retirement age in
Romania.