News

Daily Newsletter - 17 February 2021

Summary

FIC Daily Newsletter | 17.02.2021
FIC (1) || Macroeconomic (2) || Financial (1) || Investment (3) || Legislative (1) || Politics (2) || Social (4)
Foreign Investors Council - FDI Report
The FIC FDI Report provides information regarding the impact of foreign investment in our country through a detailed analysis on foreign investment flows, and how they have contributed to Romania's economic growth in recent years. As a conclusion of the second FDI Report and considering the recent data issued by the NBR which shows that FDI decreased in 2020 by 60.38% compared to 2019, the FIC considers that the Romanian authorities should add to the list of priorities the attraction of higher volumes of foreign direct investment, by increasing the absorption capacity and developing medium and long-term strategies, taking into account the economic reality. The use of FDI is favourable to long-term economic development, especially in the current context, when we face limited resources for large investment projects and the government's ability to mobilize such resources is narrowed by significant budgetary constraints.

FIC: More FDI can be lured by increasing the absorption capacity
Foreign investment in 2020
Conclusions of the Report on Foreign Investment - FIC and ASE 2020
FIC: Romania Should Prioritize Attracting Foreign Investment
FIC: More FDI can be lured by increasing the absorption capacity
Romania, the destination of foreign investments in consumption
Press release -  Foreign Investors Council
FIC: Romania must capitalize on its strengths
FIC: Romania must capitalize on its strengths
FIC: Foreign investment fell by 60% in 2020, the relationship with investors should be prioritized
Conclusions of the Foreign Investment Report - FIC and ASE
Representarives of 120 companies offer to provide counseling to the Romanian Government

Romania recorded the biggest economic growth rate in EU
Romania recorded the biggest increase in the Gross Domestic Product of all the European Union member states in Q4 of 2020, compared to the previous quarter, of 5.3%, according to a report published by the European Union’s Statistical Office (Eurostat) yesterday. Romania is followed, in terms of GDP growth rate, by Bulgaria (2.1%) and Cyprus (1.4%). The most serious decline was recorded by Austria (-4.3%), followed by Italy (-2%) and France (-1.3%).
BCR has revised upwards its 2021 economic growth forecast for Romania
BCR has revised upwards its 2021 economic growth forecast for Romania, from a 2.7% to a 4.2% increase in the GDP. The economic growth rate recorded in Q4/2020, compared to Q3/2020, was +5.3%, much above the bank’s estimate and the median of a Bloomberg survey, of +0.5%. Real GDP decreased by -1.5% in Q4 of 2020, compared to the similar quarter of 2019.
Mandatory insurance for motor vehicles recorded a significant advance
Mandatory civil liability insurance (RCA) policies for motor vehicles have recorded a significant advance in the past decade, while optional car insurance (Casco) policies have only registered slight year-on-year increases, according to Financial Supervisory Authority (ASF) data. The RCA market reached RON 3.97 billion underwritten policies at the end of 2020, up by 5% against 2019, considering that last year was marked by uncertainty and by partial and total restrictions due to the COVID-19 pandemic.
The Belgians from WDP are investing EUR 8 million in a logistics project
Belgian logistics spaces developer WDP, one of the most active investors on the Romanian market, is to expand its project in Ştefăneştii de Jos locality, Ilfov County, by building a new distribution center for Polish online footwear retailer CCC, who owns the Eobuwie (Epantofi.ro) platform, following a EUR 8 million investment. After the finalization, which is expected to take place in Q3 of 2021, Eobuwie will have an approximately 15,600 square meter unit.
Someş Water Company, has launched an approximately RON 34.5 million investment
Someş Water Company, subordinated to Cluj County Council, has launched an approximately RON 34.5 million (EUR 7 million) investment, VAT not included, supported from European funds, for the extension and rehabilitation of sewerage and water supply networks in ten localities from Cluj County. Execution works will start in the following period and will be completed within maximum 18 months.
Bucharest attracts over EUR 3.5 billion investments
Bucharest attracts over EUR 3.5 billion investments in extensive projects delivered between 2020 and 2023, ranking 7th in Financial Times’ Top 25 “Tech Cities of the Future 2020/2021”. The value includes investments in large urban regeneration projects that bring back into the public circuit former abandoned industrial platforms in central areas of the city, in new office buildings, with smart technologies adapted to the new hygiene and sanitary conditions.
Salary Law will not be amended through an emergency ordinance
Prime Minister Florin Cîţu has stated that the salary law will not be amended through an emergency ordinance, but through a draft law in Parliament whose legislative procedure will be finalized before the summer’s plenary session. The head of the Executive has added that the Ministry of Labor is working on this normative act and, once a version is proposed by this institution, it will be discussed within the ruling coalition.
Special pensions’ elimination enters parliamentary procedure
The Standing Bureaus of the Chamber of Deputies and the Senate decided yesterday to add onto the Parliament joint sitting’s agenda the debate on the elimination of special pensions for MPs. There are currently three draft laws proposing the cancelation of special pensions for Senators and Deputies. The adoption of a draft law in this direction could be postponed until next week due to legislative procedures. At public level, PNL, USR-PLUS and PSD support the elimination of such pensions.
The procedure for the Ombudsman’s revocation has been initiated
The president of the Chamber of Deputies Ludovic Orban stated yesterday that the procedure for the Ombudsman’s revocation had been launched and that a report of the Legal Affairs Committees would be sent to Parliament in two weeks’ time. He indicated that the reunited Standing Bureaus had refused to carry out “the procedures stipulated in the Ombudsman Law and regulatory procedures” in the previous session.
Excess mortality in Romania grew much above EU average in November 2020
Excess mortality in Romania grew much above EU average in November 2020 (+63.5% compared to +40.4%), according to data transmitted by Eurostat to evaluate the impact of the pandemic. This indicator illustrates the percentage evolution for each month of last year compared to the average of similar months from the period 2016-2019, starting from the idea that the Covid-19 outbreak was the factor to have led to the increase in mortality, either directly or indirectly.
The number of Romanians who fear they might lose their jobs has doubled
The number of Romanians who fear they might lose their jobs has doubled compared to last year: from 11% at the beginning of 2020, to 28% in 2021, and the possible loss of one’s job is mentioned, along with unforeseen expenses, in the top of situations that jeopardize one’s personal budget, according to a research conducted by Reveal Marketing Research and commissioned by Raiffeisen Bank. The economic uncertainty generated by the pandemic made half of Romanians be more prudent about unnecessary expenses.
The reduction of work permit fees for Romanians in UK was discussed yesterday
Deputy Prime Minister Dan Barna has discussed with British Ambassador to Bucharest, Andrew Noble a solution to lower the cost of work permits for Romanians who will want to work in the United Kingdom. According to him, relations between Great Britain and Romania have “major” potential for development, both at institutional and at economic level.