FIC Board members,
Daniel Anghel (CDR Coordinator) and Ramona Jurubita (FIC
Vice-President) had interventions during the Coalition for the
Development of Romania press conference - "Merităm în Schengen" held on
17 November. Daniel Anghel, Coordinator of the Coalition for the
Development of Romania (CDR): "I want to emphasize that only by being
part of Schengen, Romania can fully benefit from its advantages as an
EU member state. Only being part of Schengen, Romania would genuinely
participate in the European “Area of Freedom, Security and Justice”.
Without this status, Romania loses time and money and will not be able
to recover the gaps to reach the objective of convergence with the EU
average (a gradual increase of real income towards the average of the
community block). Thus, from 2004, the year before the signing of the
Accession Treaty until 2021, Romania recovered from the development
gap, according to the GDP/capita indicator at purchasing power
parities, reaching approximative 72% of the EU average in 2021, from
approximative 34%, 17 years ago. Historically, economic gaps have been
shown to recover due to inflows of foreign investment, technology and
know-how. Accession to NATO and the EU were two decisive stages in
Romania's development. The free movement of goods and services
represents significant economic benefits by facilitating the
integration of cross-border trade, advantages for transporters,
advantages for foreign investment. Accession to Schengen area will
eliminate additional verifications at internal borders unrelated to
customs clearance of goods that cause delays.” Ramona Jurubita,
Vice-president of the Foreign Investors Council (FIC): "Increasing the
attractiveness for FDI has been a constant priority on the agenda of
the Foreign Investors Council for 25 years and continues to occupy a
central place on our agenda. We consider that an essential element in
attracting foreign investments is Romania's accession to international
structures. We can clearly observe how both the accession to NATO and
later to the EU were events that boosted the growth of FDI in the
states of Central and Eastern Europe. In the case of Romania, looking
at the last 2 decades, we can note that the share of FDI stocks as a
percentage of GDP was approx. 21% in 2003 before joining NATO, then it
increased to approx. 42% GDP in 2021. Investments are always based on
trust between the parties, and Romania's accession to the Schengen area
is a test of trust between EU member states as partners of the same
European economy. We believe that Romania has passed the test of trust.
We still need the grade to be formally marked in the grade book."
The latest retail sales data were better than analysts had expected,
which contradicted market expectations that central banks would halt
interest rate hikes. The latest data from Romania shows that GDP in
Q3/2022 was 4% higher year-on-year, according to eToro analyst Bogdan
Maioreanu, who has recalled that while this year, by the end of
September, GDP had grown 5% more than in the same period of 2021, in Q3
it was up 1.3% against the previous quarter. In 2021, over 58% of GDP
was generated by the service sectors and 28% by industry. The World
Bank sees Romania on a strong upward trend this year, but warns that a
global slowdown and possible recession in the case of key trading
partners could have an impact on growth in 2023.
Wholesale trade turnover, except for trade in motor vehicles and
motorcycles, grew by 2.3% as a gross series, and by 0.5% as a
working-day and seasonally adjusted series in September, compared to
August. According to the National Institute of Statistic (INS), the
2.3% advance of the overall wholesale trade turnover in September 2022
compared to the previous month was due to an increase in turnover in
wholesale of electronic and telecommunications equipment (+19, 0%),
wholesale of other machinery, equipment and supplies (+8.9%), wholesale
of non-food consumer products (+7.3%), wholesale on a fee or contract
basis (+6.6%) and other specialized wholesale (+4.5%).
All activities provided as market services for businesses contributed
to the 27.9% increase in turnover in this segment in the first nine
months of 2022 year-on-year, according to data published by the
National Institute of Statistics (INS) on Friday, 18 November. At the
end of September 2022, in nominal terms, turnover grew in computer and
information technology service activities (+43%), other business
activities (+29.4%), transport activities (+25.6%), motion picture,
video and television program production; broadcasting and transmission
activities (+17.8%) and communication activities (+9.6%).
Banca Transilvania, the biggest bank on the Romanian market asset-wise,
posted a net profit of RON 1.44 billion at the end of the first nine
months of 2022, down by 2% year-on-year, according to the bank’s
report. Even though Banca Transilvania’s gain in the first nine months
of 2022 slightly decreased, it remained at a significant level compared
to the profit obtained in the first nine months in the past decade.
Omniasig has recorded an 87% increase in gross written premiums in the
past eight years, having reached RON 1.6 billion at the end of 2021.
Given that the volume of premiums underwritten by the company in 2022
is already close to the level recorded at the end of 2021, the result
at the end of 2022 will certainly be at least 15% higher than in the
previous year, if a relatively similar growth rate is maintained.
Swiss real estate developer Artemis, whose portfolio contains several
logistics properties in Romania, has started works on a fourth building
with the same profile in the Sânandrei Industrial Park near Timișoara.
The fourth building will thus be fully occupied by Mondo Style, a
manufacturer of PVC and aluminum double glazed windows. The company
already has a factory in Timişoara, but the land it is located on was
bought by Artemis three and a half years ago to develop a residential
project.
Rehabilitation works on the Fish Fountain in Victoriei Square in
Timişoara, a symbol of the city, have been finalized after about a
year. The investment amounted to EUR 130,000, which was ensured from
the City Hall’s budget. Deputy Mayor of Timisoara Ruben Lațcău
announced on his Facebook page that the project had been taken over by
the current administration "in a state of abandonment" from the former
city administration.
Bihor County Council (CJ) President Ilie Bolojan (PNL) has announced
that the feasibility study for the expansion of the passenger terminal
at Oradea Airport has been approved, and its capacity will be increased
to 350 passengers per hour. The investment amounts to over EUR 43
million, of which the County Council’s contribution is EUR 3 million.
Ilie Bolojan announced on his Facebook page on Thursday evening that
expansion works on the new terminal of Oradea Airport should be
finalized by the end of 2023.
Social Democratic (PSD) Senator Robert Cazanciuc announced on Sunday,
on the World Day of Remembrance for Road Traffic Victims, that he would
resume the initiative to amend the law against drivers who got behind
the wheel without having the right to drive and who caused fatal road
accidents. He added that, through the new draft law, all those who
thought they can drive a car without a license, drunk or drugged should
know that they would end up in prison if they caused a road accident
resulting in victims.
The Government has adopted a decision approving the circumstances and
the specific procedure for awarding the contract for the procurement of
products corresponding to Phase 1 of the "Integrated Communications and
Information System for Battalion" (SICIB) equipping program and to
Phase 1 of the "Command Point - Brigade Type" (PC Bg) equipping
program. The manufacturing and maintenance, on national territory, of
SICIB and PC Bg systems and equipment will ensure interoperability with
other similar military capabilities of NATO member states, the Romanian
state’s participation in the development and support of the European
Union’s Defense Technological and Industrial Base, based on
capabilities, competence, competitiveness and the shortening of the
supply chain.
Two MPs from Save Romania Union (USR) want to ban gambling halls within
300 meters of schools, children’s playgrounds, cultural centers,
hospitals and churches. USR says the initiative comes in response to
the growing number of people addicted to gambling, especially among
minors. The legislation in force (Government Emergency Ordinance
77/2009) only bans gambling halls inside educational establishments,
their campuses, cultural centers, hospitals and churches.
A €500 million scheme to support Romanian companies affected by
Russia’s invasion of Ukraine was approved by the European Commission.
Romania notified the Commission, under the Temporary Crisis Framework,
that it plans to grant companies across sectors state aid in the form
of guarantees on loans or subsidized loans. In light of the economic
uncertainty caused by the war in Ukraine, the scheme aims at ensuring
that companies in need can access enough financial resources. The
measures are open to small and medium-sized enterprises (with an annual
turnover above €4 million) and large companies across sectors with some
exceptions, such as gambling and betting activities, insurance, real
estate activities, energy and fuel distribution and trade. Financial
and credit institutions will also be excluded, the Commission noted.
More than half of children in underprivileged communities say that
teachers ask them for money for the class fund, used to purchase
various materials, according to a survey conducted by World Vision
Romania, which recalls that the Education Law and the Constitution of
Romania state that access to education is free and mandatory. A third
of children say that teachers discriminate against students in their
class based on their intellectual capacity, physical appearance,
religion, clothing or disability, while 45% say they have classmates
who discriminate against other students.
The Romanian College of Physicians has announced that it aims to
streamline civil and disciplinary liability mechanisms in malpractice
cases. To this end, it is considering setting up a body of medical
experts to provide legal expertise to civil courts, in order to unblock
lawsuits. The College of Physicians has indicated that accredited
doctors from all specialities who are very familiar with medical
practice (including medical guidelines and protocols) will offer
medical expertise to civil courts in order to clarify whether or not
there is a case of malpractice.
Romania has received assurances that all social programs corresponding
to the period 2021-2027 will be approved this year. The risk for
Romania to lose about EUR 5.2 billion of the total allocation of over
EUR 30 billion has thus been eliminated, the Ministry of European
Projects and Investments indicated in a press release issued on Friday
evening. According to the cited source, the European Commission has
agreed to the possibility of allocating funds to support the vulnerable
population by bearing part of the costs of energy bills (heating, gas,
electricity). Moreover, following the talks, the "Support for Romania"
program, through which social vouchers worth RON 250 are offered every
two months to vulnerable people for the purchase of food and warm
meals, will be extended.
The National Employment Agency (ANOFM) included 17,875 people in
vocational training programs in the first ten months of the year, the
unemployed accounting for over 82% of the total. According to the
institution’s data, published on Friday, of the total number of people
participating in these courses, 14,717 are unemployed, 437 people -
other than the unemployed - benefit from free services, and 781 benefit
from on-the-job training through apprenticeship programs.