News

Daily Newsletter - 2 November 2020

Summary

Macroeconomic News (4)

Residential building permits down

30,612 building permits were issued for residential buildings in the first nine months of this year, down 4.9% from the corresponding period of the previous year, according to the National Statistics Institute (INS). The North-West region was the only one to posted a modest increase in the number of permits.

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Next year's budget to wait until after new cabinet sworn in

Prime Minister Ludovic Orban announced on Saturday that he wants the state budget to be adopted before the end of the year, but after the new cabinet is sworn in. The prime minister said the current cabinet is working on a new budget revision and that a new PNL cabinet will increase pensions "based on economic reality", adding that the main goal is to ensure the necessary resources for investing in the country's development.

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Unemployment rate down to 5.2%

The unemployment rate dropped to 5.2%in September, down 0.1 percentage points compared to the previous month, according to the National Statistics Institute (INS). The men's unemployment rate was 1.1 pp higher compared to women.

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PM praises national economy

Prime Minister Ludovic Orban stated that "the Romanian economy is in one of the best shapes in Europe", adding that, according to official figures, public investment, industrial production and the number of employees have increased. "Growth trends" are reported by almost all economic sectors except HoReCa.

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Financial News (3)

Long-term financing cost up

Romania's yield curve reacted to the situation in the international financial markets, as well as to domestic news from the last week of October, highlighting the increase to 3.395% of the interest rate on the government's 10-year bonds. The increase was at odds with with the trend of US and German bonds, according to Andrei Rădulescu, director of macro analysis at Banca Transilvania.

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Finance Minister: BNR failed to reach the state bond purchasing target

The Minister of Finance, Florin Citu, said on Friday that the fiscal policy had "done its job", but the "National Bank had failed to reach its state bond purchasing target", while the key rate is still too high. The statements were made at a conference organized by the Academy for Economic Studies (ASE).

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Cabinet unlikely to extend loan payment deferrals

Prime Minister Orban said the Cabinet cannot extend the deferral of loan payments in 2021, but he did mention "a more rational distribution of the loan reimbursement cost", after talks with the representatives of the finance and banking sector.

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Investment News (1)

Cernavoda-Stalpu aerial line to be ready in May, 2020

The construction of the Cernavoda-Stalpu 400 kV aerial power line will be completed in May, 2020, at a cost of EUR 75 million, according to Transelectrica. "Strategic electricity transport projects in Romania, including the integration of green energy in the national system, are a priority for the Cabinet and are progressing at an accelerated pace with the help of the European funds accessed by Transelectrica," said Government Secretary General Antonel Tanase.

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Legislative News (3)

Bogdan Chiritoiu: Unfair competition law to be amended

The unfair competition law will be amended in order to protect small companies against big companies abusing their superior negotiation power, especially since many small companies are on the brink because of the pandemic, according to Bogdan Chiritoiu, President of the Competition Council.

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Markup law to be repealed

After USR and PSD initially proposed repealing the law article making it mandatory for companies to declare their markups, it turns out that the markup law will be repealed in full, according to a bill signed by President Iohannis.

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Ministry of Justice warns about deficiencies of tech producer licensing bill

 The Ministry of Justice's official position regarding the bill featuring measures for the IT&C infrastructure and the implementation of 5G networks.

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Politics (2)

Grindeanu says PSD to win elections, rules out PNL alliance

 

Sorin Grindeanu, First Vice-President of the Social Democratic Party (PSD), ruled out any alliance with the National Liberals (PNL) based on the model of the former Social-Liberal Union (USL).

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PM to visit Israel

Prime Minister Ludovic Orban will conduct an official trip to Israel next week. Orban will meet PM Netanyahu, as well as Israel's president and deputy PM, in order to discuss ways to increase the bilateral trade.

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Social (1)

Doctors to stage street protests

The Executive Bureau of the "Medical Solidarity" Federation has decided to stage street protests as the next step in promoting the members' demands, according to a press release. The protests will be held every week in Victory Square.

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