News

Daily Newsletter - 15 September 2022

Summary

FIC (1)
Macroeconomic (4)
Financial (4)
Investment (3)
Legislative (4)
European News (1)
Social (3)
FIC 
FIC launching event of the "Va Urma" project with the participation of the Prime minister
FIC launched the 2022 edition of Va Urma (https://vaurma.ro) with the participation of the Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of the Government and Parliament, international institutions, and economic leaders. The "Va Urma" project represents an economic development model with a vision for the next 20 years, updated to take account of the latest events at global level. The event was a first step in setting country directions agreed and supported by the authorities, representative international institutions, and the business environment. The participants agreed on ten long-term measures and several quick wins for boosting the future economy based on investments, energy mix, digitalization, human capital and institional capacity.
Macroeconomic 
Government’s gross financing needs for 2022 have increased to RON 148.6 billion
Government’s gross financing needs for 2022 have been revised to about RON 148.6 billion, based on the projected level of the budget deficit of 5.8% of GDP (about RON 80.1 billion), following the budget adjustment approved through Government Ordinance 19/2022 on the 2022 state budget adjustment, as well as on the volume of debt to be refinanced in 2022, of about RON 68.5 billion. According to the cited sources, the additional net financing as a result of the budget adjustment (budget deficit) will be ensured from internal sources.
Total industry turnover decreased by 2.4% in July 2022
Total industry turnover (domestic and external market) decreased by 2.4% in nominal terms in July 2022, compared to June 2022, and grew by 24.1% year-on-year, according to the National Institute of Statistics (INS). By major industry groups, advances were recorded in the energy industry (+140.1%), in the capital goods industry (+19.2%), the non-durable goods industry (+17.9%), in the intermediate goods industry (+16.6%), and in the durable goods industry (+10.7%).
Industrial production fell by 1.3% as a gross series in the first seven months of 2022
Industrial production fell by 1.3% as a gross series in the first seven months of 2022, compared to the similar period of 2021, while July brought a 3.1% decline, according to data made available by the National Institute of Statistics (INS). Industrial production as a working days and seasonally adjusted series, dropped 2.2% in the first seven months of 2022 and 0.9% in July. The decline in July was of 1.9% as a gross series and of 0.3% as an adjusted series compared to June 2022.
New orders in the manufacturing industry grew by 18.5% in 1 January - 31 July 2022
New orders in the manufacturing industry grew by 18.5% in nominal terms during the period 1 January - 31 July 2022, compared to the similar period of 2021, according to data published by the National Institute of Statistics (INS) on Wednesday, 14 September. The official statistics indicate that new orders in the manufacturing industry were boosted by the advances recorded in the intermediate goods industry (+26%), the durable goods industry (+20.9%), the non-durable goods industry (+19%) and the capital goods industry (+14%) during the aforementioned interval.
Financial 
Daniela Elena Pene remains a member of Generali Romania’s Board of Directors
Daniela Elena Pene remains a member of insurance company Generali Romania’s Board of Directors, after having received the Financial Supervisory Authority (ASF)’s approval, according to the information transmitted by ASF. In addition to being a member of Generali’s Board of Directors, Daniela Elena Pene is also the head of the company’s sales and marketing department. She has held this office for more than eight years.
Euroins Romania plans to increase its share capital by RON 55.8 million
Euroins Romania, the new leader of the insurance market following the collapse of City Insurance, is to increase its share capital by RON 55.8 million, by issuing new shares in exchange for cash contributions, according to the information published in Euroins shareholders’ notice to attend, in the Official Gazette of Romania. The General Meeting of Shareholders will take place on 29 September 2022, when the new share capital increase will be approved. Euroins had last increased its share capital at the beginning of August, by RON 44.7 million, representing the compensation of some receivables in euro the majority shareholder Euroins Insurance Group had against Euroins Romania.
The Development Bank of Romania will soon start operating
The Development Bank of Romania (BDR) can start operating after obtaining the state aid authorization decision from the European Commission and the operating permit from the National Bank of Romania, according to a draft Government Decision published by the Ministry of Finance. The bank’s initial share capital subscribed by the shareholder, through the Ministry of Finance, is of up to RON 3 billion, which will be ensured from the privatization proceeds, except for the amount representing the equivalent of EUR 10 million, which will be paid from the state budget. BDR will need to attract external sources of financing in order to expand its operations.
OTP Bank Romania sets up a department dedicated to sustainability
OTP Bank Romania has announced the establishment of a department dedicated to sustainability, which will coordinate the bank’s transformation process through actions required to implement the ESG (environmental, social, governance) strategy. In the first half of 2022, OTP Bank announced its commitment to the definition and implementation of an ESG strategy and a framework aimed at integrating sustainability best practices into the organization, with the ultimate goal of ensuring the bank’s real positive impact in facilitating the transition to a low-carbon economy and improving the quality of living for current and future generations.
Investment 
TeraPlast Group plans to invest RON 24 million in 2022
TeraPlast Group, the biggest Romanian building materials manufacturer, has launched an investments program targeting energy efficiency and environmental protection. The company thus plans to invest RON 24 million in photovoltaic panels and to increase the total area of its production units covered with photovoltaic modules, by building a new photovoltaic plant, in 2022, according to TeraPlast CEO Alexandru Stânean.
Development Ministry to invest RON 152 m to rehabilitate Romanian Academy headquarters
On Wednesday, 14 September 2022, Development Minister Cseke Attila participated in the signing of the execution contract for the rehabilitation, consolidation, modernization, expansion and equipping of the Romanian Academy’s historical headquarters and for the construction of a new building (auditorium). The contract has a total value of RON 152,736,390.13 million, which will be covered by the Ministry of Development, through the National Investment Company (CNI).
Photon Energy has started building the seventh photovoltaic power plant in Romania
Photon Energy, a Dutch group activating in the field of renewable energy, has started construction works on the seventh photovoltaic power plant in Romania, with a production capacity of 7.1 MWp, located near Săhăteni locality in Buzău County. The plant will spread on over 10 hectares of land, will include 12,700 solar panels, and will supply approximately 11.4 GWh of renewable energy annually to the SDEE Electrica Muntenia Nord grid.
Legislative 
PSD proposed in Parliament several amendments to OUG on energy
The Social Democratic Party (PSD) has proposed in Parliament several amendments to the Government Emergency Ordinance (OUG) on the capping and compensation of energy prices, two weeks after the OUG had been adopted in the Government. According to the amendments submitted by PSD, household consumers who exceed the ceiling set by the government, of 255 kWh for electricity will pay a price of RON 0.8/kWh for the 255 kWh, and will only pay the full price for the amount exceeding this ceiling.
Criminal records could be issued electronically free of charge
A draft law submitted to the Chamber of Deputies by PNL deputies George Tuță and Sebastian Burduja proposes that citizens or companies can receive the criminal record free of charge and in electronic format from state institutions. The two MPs’ proposal completes Law 290/2004 on criminal records. If approved, within three months of the law entering into force, a joint order of the Minister of the Interior and of the Minister of Research, Innovation and Digitalization will establish the procedures for issuing criminal records in electronic format.
Draft law banning the purchase of antivirus products from Russia has been debated
The draft law banning the purchase and use, by Romanian state institutions, of antivirus products and services from entities in the Russian Federation was debated during the Government meeting on Wednesday, 14 September 2022. Amid the war in Ukraine, the draft law establishes the legal and institutional framework to prohibit the purchase and use, by central and local public authorities and institutions, of anti-virus software products and services originating directly or indirectly from Russia or from an economic operator under the direct or indirect control of a natural or legal entity from the Russian Federation. The violation of these provisions constitutes an offence and shall be sanctioned with fines ranging from RON 50,000 to RON 200,000.
Law on the implementation of the International Kidnapping Convention has been amended
The Senate, reunited in a plenary meeting on Wednesday, 14 September, amended the law on the enforcement of the Convention on the Civil Aspects of International Child Abduction, making it compulsory for the court to hear a minor who has reached the age of 10. The draft law, initiated by the Government, brings some clarifications regarding the authorities involved in the return procedure and the exercise of rights of access. Free legal aid in the form of a lawyer is granted only by the Bucharest Bar Association, and, in the enforcement phase, the competent court to grant public legal aid is the enforcement court.
European News 
Ursula von der Leyen delivered the annual State of the European Union address
European Commission President Ursula von der Leyen delivers her annual State of the European Union address on Wednesday, 14 September, outlining policy priorities for the next 12 months at a time of increasingly serious challenges for her "geopolitical Commission". Speaking in the European Parliament, Von der Leyen is expected to present plans for steering the bloc through the coming winter in the face of shrinking energy supply and falling living standards while maintaining plans to press ahead with the green and digital transition. Her eagerly awaited speech comes in the context of increasing hardship across Europe, with rising prices, shortages of energy, and possibly also food, underpinned by the ongoing war in Ukraine, casting a dark shadow over the continent’s immediate future.
Social 
Family Ministry announces health education pilot project for girls in state’s care
On Wednesday, 14 September, Family Minister Gabriela Firea announced the launch of a health education pilot project for girls in the care of the state, through which they will get information from doctors and specialists about their own bodies, what early pregnancy means and how it can be prevented. Gabriela Firea indicated, in a Facebook post that underage mothers were a reality in Romania, with 16,500 teenage girls under 19 who gave birth in 2021 alone, according to the National Institute of Statistics.
Government increases the sum granted for first prize in national Olympics to RON 600/student
Education Minister Sorin Cîmpeanu stated during the Government meeting on Wednesday, 14 September 2022, that the Government would increase the sum allocated for the first prize in the national Olympics from RON 22 to RON 600 per student, and the sum allocated for students who win gold medals in international Olympics to RON 20,000. The Minister also announced that the government meeting’s agenda also included a government decision and an emergency ordinance extending the "Warm Meal" program by another 50 schools.
Four in ten employers offer more fringe benefits in 2022 than in 2021
84.5% of the companies participating in the latest survey conducted by eJobs Romania say that they offer fringe benefits to their employees and that these remain an important criterion for candidates when choosing their employer. Food vouchers are most frequently included in the benefits package, with 77.1% of employers saying they include them. They are followed by holiday bonuses, offered by 68.6% of respondents, health insurance subscriptions to private clinics (55.7%) and extra days off (41.4%). 40% offer employees access to professional specialization training, 34.3% organize annual team parties or teambuilding gatherings, 31.4% pay for transport and 30% offer gift vouchers.