Daily Newsletter - 21 July 2017


Macroeconomic News (4)

Romania leads EU budget deficit growth 

While the European Union and the Eurozone reported a 0.2 pp drop in national budget deficits for the first quarter of this year, Romania posted the highest budget deficit increase. The national deficit went from 1.8% of the GDP in Q4, 2016, to 3.2% of the GDP in Q1, 2017, according to Eurostat.


Romania attracted less than 7% of CEE structural and cohesion funds 

Romania attracted less than 7% of the EUR 82 billion worth of structural and cohesion funds invested in Central and Eastern Europe from the 2007-2013 budget. By comparison, Poland managed to absorb more than 30% of these funds. The CEE countries need an estimated EUR 615 billion until 2025 for infrastructure projects.


Cabinet issues decree on social contributions 

The Cabinet issued yesterday a decree making it mandatory for employers to pay the unemployment and health insurance social contributions at the current minimum salary for part-time workers. Students and pensioners are exempted.


Banca Transilvania revises economic growth estimate 

Banca Transilvania has revised upward the economic growth estimate for this year, but warned about the deterioration of economic growth. The latest economic growth rate put forward by the bank is 4.7%, down from 4.8% the previous year, according to Senior Economist Andrei Radulescu.


Financial News (2)

Euro climbs to 2-year high 

The euro climbed close to a two-year high after the upbeat speech delivered by Mario Draghi, president of the European Central Bank. Draghi stated that the economy is on track, which suggests that the future direction of the Eurozone bond acquisition program would be discussed at one of the upcoming ECB meetings.


Banca Transilvania boosts equity 

Banca Transilvania has issued 695.3 million new shares with a nominal value of RON 1 each, according to a report sent to the Bucharest Stock Exchange (BVB). "The issue increased the share capital to RON 4.34 billion, divided into 4.34 billion shares with a nominal value of RON 1 each," stated the report.


Investment News (2)

Sibiu-Pitesti highway price tag doubles 

The Ministry of Transport has announced via its website that the Sibiu-Pitesti Highway would cost a total of EUR 3.34 billion. By comparison, the Transport Master Plan adopted last year put the total cost at EUR 1.6-1.8 billion, with 75% of the funds being provided by the European Union.


OMV Petrom starts building new poly-fuel unit 

OMV Petrom has started building the new poly-fuel unit of the Petrobrazi refinery. The unit will allow the refinery to convert GPL components to gasoline. The project's budget is EUR 60 million. "The new unit is an ambitious project that would bring cutting edge refining technology to Romania," said OMV Petrom board member Neil Anthony Morgan.


Legislative News (1)

Grants for diaspora associations, foundations and religious groups 

The Ministry for Romanians Everywhere (MRP) proposed a draft bill that would provide grants for diaspora associations, foundations and religious groups. "We're putting forward a draft bill that's more modern and more compliant with the European Union's regulations," said Minister Andreea Pastarnac.


Politics (1)

Grindeanu opposes organization leadership 

Former prime minister Sorin Grindeanu posted on Thursday a message complaining that the Social Democratic Party (PSD) had established a new leader for the Timis county organization by supporting secretary of state Petru Andea. Grindeanu added that he would never allow the Arad organization, one of the weakest in the country, to lead the Timis organization.