The Foreign Investors Council published the Business Sentiment Index
(BSI) results for the latest edition, spring 2022. The survey shows
that there is a moderate optimism among investors, however it is
impacted by uncertainty and current challenges such as: energy market
crisis, military conflict in Ukraine, inflationary pressures affecting
supply chains and customer demand, including the erosion of end-user
disposable income, which possible effects were highlighted in the May
edition of the Inflation Report published by the National Bank of
Romania (NBR). Companies want to invest in Romania, half of the
respondents estimate that for this year the planned investments are at
similar levels to last year, and 40% of respondents say they plan to
invest larger amounts compared to the previous period. have plans to
expand their workforce and 37% keep these plans for the next 12 months
at levels similar to last year. The sentiment remains that there is a
need for labor, but unfortunately the perception of the availability of
adequate staff remains reserved, only 45% of respondents believe that
labor force is competitive. Reforms are still needed in key areas such
as infrastructure, transparency, and coherence in the application of
public policies, reducing bureaucracy and the burden of regulations.
The Alliance for Romanians’ Unity (AUR) has urged Ciucă Government to
present the program for reducing the share of public debt in the Gross
Domestic Product (GDP), in Parliament, during the "Prime Minister’s
Hour", within maximum two weeks. According to the press release issued
by AUR, Romania’s government debt reached 50.3% of GDP at the end of
March 2022, up by 1.5% year-on-year. The fiscal-budgetary
responsibility law stipulates that the Government must publicly present
a program to reduce the burden and freeze public sector wage spending
when the debt exceeds 50% of GDP.
The Government borrowed USD 1.75 billion from external markets through
two bond issues on Wednesday. It thus borrowed USD 1 billion over a
5.5-year period and USD 750 million over a 12-year period. This is the
third exit on external markets this year. The Romanian state had most
recently borrowed from international markets in January, when it had
had two rounds of euro- and dollar-denominated bond issues. Romania has
had difficulties in borrowing on the domestic market in the past few
months, both due to the growing interest rates and to the quite low
demand from investors.
Retail trade turnover (except for trade in motor vehicles and
motorcycles) increased by 31.2% as a gross series and by 29.3% as a
working-day and seasonally adjusted series in the first three months of
the year compared to the same period of 2021, according to data
published by the National Institute of Statistics (INS) on Wednesday.
Moreover, the overall retail trade turnover (except for trade in motor
vehicles and motorcycles) grew by 10.3% in nominal terms, as a
working-day and seasonally adjusted series, in March 2022, compared
with the previous month.
The turnover from market services mainly provided to enterprises grew
by 24.5% as a gross series and by 23.7% as a working-day and seasonally
adjusted series in the first three months of the year, compared to the
same period of 2021, according to data published by the National
Institute of Statistics on Wednesday. Moreover, the turnover from
market services mainly provided to businesses was up 4.3% as a
working-day and seasonally adjusted series, in nominal terms, in March
2022, compared with the previous month.
Omniasig, Asirom and BCR Asigurări de Viață, insurance companies owned
by the Austrian group Vienna Insurance Group (VIG), recorded EUR 224.8
million gross underwritten premiums at the end of the first three
months of 2022, up by 53.8% year-on-year, according to information
published by VIG. In VIG’s portfolio, Romania is included in the wider
Central and Eastern European (CEE) region, along with countries such as
Albania, the Baltic States, Bosnia and Herzegovina, Bulgaria, Croatia,
Moldova, Northern Macedonia, Serbia, Slovakia, Ukraine and Hungary. Of
these countries, the three insurance companies owned by VIG in Romania
contributed the most to VIG’s portfolio.
ING Bank Romania has announced the finalization of the selection
process for a new communication partner. McCann PR has thus been
selected as partner agency for the next few years. This collaboration
covers the communication needs of all three business segments of the
bank: individuals (retail), SMEs and Mid-Corporate and Wholesale
Banking through corporate communication strategies, the development of
PR campaigns, sustainability projects and employer branding to
strengthen ING Bank’s brand positioning at national level.
Frédéric Oudéa, the longest-serving chief executive of a major European
bank, will step down as head of Société Générale next May, ending a
tenure dating back to the last financial crisis, according to the
Financial Times. Mr. Oudéa, 58, announced at the Paris-based SocGen’s
annual general meeting on Tuesday that he would not be seeking renewal
after his term in office comes to an end on 23 May next year.
"Dr. Carol Davila" Central Military Emergency University Hospital in
Bucharest will invest RON 128.6 million (EUR 26 million) from its own
funds and RON 25.3 million (over EUR 5 million) from the Ministry of
Development, Public Works and Administration (MDLPA) to consolidate and
modernize two departments within the hospital. The works will target
the radiotherapy department in section H5 and the dermatology
department and imaging center in section E, according to a press
release issued by MDLPA.
Amid the opening of the second phase of Electroputere Park and the
upcoming finalization of Electroputere Mall’s new extensions, Catinvest
has announced the opening of new stores, restaurants, with over 200
brands, as well as a new playground. Catinvest will continue to
diversify the range of options in Electroputere Mall in the following
period, with new stores from brands such as Buzz, Colin’s, Kigili,
Sportvision, Gorilla Gym, My Geisha, Gant, Candy Cat and DM Drogerie
Markt. It will also increase the attractiveness of the food court area
in the coming weeks by opening new restaurants Chopstix, Cartofiserie
and Burger King.
Building materials manufacturer TeraPlast (TRP) has received the
approval for funding under the state aid scheme for a EUR 11.2 million
investment in a stretch film production unit. Construction works on the
new plant will start this year in the industrial park in Sărățel,
Bistrița-Năsăud. The facility will have two production lines for
polyethylene film for industrial use, representing an annual capacity
of more than 14,000 tons, according to a report published on Bucharest
Stock Exchange.
Education Minister Sorin Cîmpeanu has announced that the future
Education Law will ban teachers from offering private classes to
students from the classes where they teach. He has also transmitted
that a national school inspection commission will be set up to check
whether the rules of ethics and deontology are complied with. According
to the Minister, the Ministerial Order 4831 of 2018 included a
provision banning private classes with students from teachers’ classes,
but it has not been observed.
The law amending and completing Article 561 of Government Emergency
Ordinance (OUG) 57/2007 on the regime of protected natural areas,
conservation of natural habitats, wild flora and fauna, which unblocks
several projects for the construction of hydropower plants, was
analyzed by the Constitutional Court of Romania (CCR) on Wednesday, 18
May, from the point of view of its compliance with the rules stipulated
in the current fundamental law of the country. The constitutional
challenge had been filed by the MPs from Save Romania Union (USR),
right after the draft law had been adopted by the Chamber of Deputies,
as the decision-making body, on 23 March.
European Commission plans to overhaul of the EU’s waste shipment
regulation could hit the recycling industry by creating a captive
market in Europe with artificially low prices that will depress
investments in recycling, the industry has warned. As part of its drive
to create a circular economy, the EU executive tabled a revision of the
waste shipment regulation in November last year. The aim is to ensure
that the EU does not export its waste problems, to make shipments for
reuse or recycling within the EU easier and to tackle illegal waste
shipments. But the one-size-fits-all nature of the European
Commission’s proposal is poorly suited to the diverse waste streams it
covers, said Emmanuel Katrakis from the European Recycling Industries
Confederation (EuRIC).
Career development is more important for women than for men (82% vs.
78%) in Romania, while in other European countries the opposite
situation can be noticed, according to the fourth edition of the
Randstad Romania Employer Brand Study. Less than half of employees say
they feel encouraged to develop at work, an aspect worth taking into
account by companies, given that it is on the short list of
professional priorities of Romanians, especially those in the white
collar category (63% compared to 52% in the case of blue-collar
workers).
Benefit, a company part of the Edenred Group, has launched the fifth
edition of its annual Benefit study, an analysis of the fringe benefits
industry in Romania. The average fringe benefits budget allocated by
companies last year was RON 627 per employee per month, up by almost
50% over the past 5 years and nearly 25% against 2019, before the
COVID-19 pandemic. An increase to RON 820 has been estimated for the
current year, which represents the highest percentage increase in the
past six years, according to the company.