News

Daily Newsletter - 2 September 2019

Summary

Macroeconomic News (1)

Economy growth slows down, deficits rise

The growth pace of the Romanian economy will continue to fall, moving below 4% and heading for under 3% by 2020, as the consumption stimulus runs out of steam, according to the latest report from Standard & Poor's. The agency confirmed Romania's country rating at BBB-/A-3 for the long and short-term debt.

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Financial News (3)

Romania-UAE trade reached USD 131.72 million

The United Arab Emirates is one of the biggest trade and investment partners in the Gulf region for Romania, with bilateral trade reaching USD 151.26 million in the first half of this year, according to data from the Ministry of Trade.

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Start-Up Nation program sent acceptance letters to all 10,000 beneficiaries

Stefan-Radu Oprea, the Minister of Trade, announced that the contracts for the 10,000 projects approved under the Start-Up Nation program could be signed next week.

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Green car sales up 60%

Romanians bought 3,541 green cars in the first seven months of this year, up 60% on an annual basis, according to data released by the Automotive Producers and Importers Association (APIA). Green car sales accounted for 3.6% of the total this year, compared to 2.5% in the corresponding period of 2018.

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Investment News (3)

Hidroelectrica to pay EUR 10 million for consulting contract

Hidroelectrica is planning to spend EUR 10 million on consulting services regarding the acquisition of assets expected to be put up for sales by the local subsidiaries of CEZ and Enel, according to SEAP information. The contract has an 18-month deadline, but that could be extended depending on the decisions taken by CEZ and Enel.

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"We're aiming for an absorption rate of 38% for EU funds"

Romania reached an absorption rate for EU funds of more than 31% by August 16, and the overall target for this year is 36-38%, according to statements made by Minister of European Funds Roxana Manzatu on Saturday. Of the EUR 31 billion allocated by the EU, Romania has absorbed EUR 9.7 billion through the cohesion and agricultural programs, plus another EUR 6.8 billion in direct payments to farmers.

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Transgaz and BSOG begin pipeline work

Representatives of Transgaz and Black Sea Oil&Gas signed on Friday the order for beginning the construction of the infrastructure that would bring the natural gas pumped out of the Midia Natural Gas Development Project (PDGNM) into the National Transport System (SNT). The project is scheduled for completion in 2021. Under this project, five production wells will be drilled and an undersea production complex will be installed on top of the Doina field, which will be linked by an 18-kilometer long pipeline to the automated production platform located on top of the Ana field.

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Politics (2)

USR-PLUS to establish joint public policy commission

The USR-PLUS alliance will establish a joint Public Policy Commission, whose purpose will be to harmonize the political programs of the two parties, according to PLUS leader Dacian Ciolos. The National Council of PLUS has already voted a list of five members who will sit on this commission.

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PM vows to sue President

Prime Minister Viorica Dancila stated after the Social Democratic Party's (PSD) Executive Committee meeting on Saturday that the PSD would sue President Klaus Iohannis for saying the Cabinet is corrupt. The PM also wants to take the President to the Constitutional Court if the new ministers are not approved.

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Social (1)

Pensions go up

The value of the pension point increased by 15% on September 1, going from RON 1,100 to RON 1,265, following the coming into force of the new Pension Act. The point will increase to RON 1,875 in 2021.

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