News

Daily Newsletter - 2 December 2019

Summary

FIC (2)

Ramona Jurubita, President of FIC: A modern road infrastructure would ensure an average economic growth rate of 2% per year

 Officials from the Coalition for Romania's Development (CDR), presented the organization's priorities during the meeting with the new Cabinet. Ramona Jurubita, President of FIC, stated that: A modern road infrastructure would ensure an average economic growth rate of 2% per year.


CDR: Top 5 priorities for the new government

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PM met with CDR representatives

Ludovic Orban, Prime Minister had a meeting with Coalition for Romania's Development (CDR) representatives on 29 November 2019. The Prime Minister told CDR: Your are always welcome for any institutional dialog between your organization and the companies you represent, through the structures making up the CDR.

PM met with CDR representatives

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Macroeconomic News (4)

New government, new economic growth

The National Strategy and Forecast Commission (CNSP) has revised the national economy's growth forecast from 5.5% to 4% for this year, with the industry sector suffering the most severe correction: from +5.4% to -1.3%. The agriculture sector dropped from +1.9% to -5%.

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Tax experts: How chaotic are the Tax Code exceptions?

 Fiscal incentives are actually subsidies. The country should "reward with indirect subsidies the companies and individuals who are active in fields of massive social impact, where the state has a low performance as a provider of services and where we are still not competitive compared to the developed countries," said Ramona Jurubita, Country Managing Partner at KPMG Romania.

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BCR revises economic growth forecast

BCR has revised downward the economic growth forecast for this year, from 4.5% to 4%, while the 2020 estimate was revised from 3.8% to 3.5%. The budget deficit is expected to reach 4% of the GDP next year and may go as high as 5% in 2021. This is seen as "extremely hard to finance and demanding a correction".

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MFP to borrow almost RON 6 billion

The Ministry of Finance (MFP) has scheduled loans worth RON 5.94 billion for December, including two issues of discount T-bills worth RON 1 billion. The rest of the funds will be borrowed through eight issues of state bonds. Another RON 645 million could come from supplementary sessions of non-competitive bids.

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Financial News (2)

Banks under pressure

The restructuring of the banking system continued in the first nine months of this year, including both the network of branch offices and the number of employees. The number of branch offices decreased by 397 in one year, while the number of employees fell by 2,346 compared to the first nine months of 2018.

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MFP opened last issue of retail bonds

Romanians can start subscribing for the new issue of state bonds available solely to retail clients under the Tezaur Program. The bonds mature in 1, 2, 3 and 5 years, bearing annual interest rates of 3.5%, 4%, 4.5% and 5%. The yields are tax exempt by order of the Ministry of Finance.

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Investment News (1)

Bakery invested EUR 12.5 million in new production line

The biggest producer of baking goods and pre-baked pastries in Romania, controlled by Belgian group La Lorraine, has invested EUR 12.5 million in a new production line installed at the Campia Turzii bakery. The new line will supply both local and foreign markets, creating dozens of new jobs.

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Legislative News (2)

Raluca Turcan: If Parliament won't change the law, the Cabinet will take responsibility

Deputy PM Raluca Turcan announced that the Cabinet would resort to the special procedure of taking responsibility for the abrogation of the compensatory appeal unless Parliament repeals the law. The repeal of bad judiciary laws was the main issue of the PNL election campaign.

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Unconstitutional bill reported out favorably

A bill sponsored by Deputy Catalin Radulescu (PSD) which would allow individuals charged with tax evasion to avoid jail by paying everything they owe plus 20% was reported out favorably by the Senate's commissions. The bill was initially passed a year ago, but rejected by the Constitutional Court.

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Politics (2)

Basescu: Alliances with PNL and USR are the only option

The People's Movement Party has no other option than to form alliances with the National Liberals (PNL) and Save Romania (USR) ahead of the local elections, according to MEP Traian Basescu.

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Iohannis: National unity, tied to aspirations to the actual rule of law and an inclusive society

President Klaus Iohannis said the Union of 1918 continues to send the fundamental message that every individual is responsible for the fate of the nation. The President added that national unity was fundamentally linked to the aspiration to the rule of law and an inclusive society.

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