News

Daily Newsletter - 22 June 2020

Summary

FIC (1)

CDR: Romania's energy security could be endangered by lack of investment in electricity generation capacities

The Coalition for Romania's Development (CDR) has urged the authorities to adjust the legislation in order to stimulate investment in new electricity production capacity by allowing investors to sign long-term contracts outside the centralized market.

CDR: Romania's energy security could be endangered by lack of investment in electricity generation capacities

Electricity investment must become a priority for Romania

Lack of investment in electricity generation capacities endangers energy security

CDR urges modification of energy legislation

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Macroeconomic News (4)

Potato consumption down in Romania

Potato consumption in Romania decreased by an average of 1.4% per year between 2008 and 2018, and a well above average of 10% in 2019, compared to 2018, according to Eurostat data. The potato trade deficit reached a record EUR 64 million in 2019, noted a report by Banca Transilvania (BT). The deficit is the result of high prices and a decrease in production.

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Romanian GDP had highest growth rate in 2019

Last year, Romania saw the fastest economic convergence, with an increase of 3 percentage points in gross domestic product per capita at purchasing power parity, jumping to 69% of the European Union average and overtaking Greece. Compared to 2008, the GDP per capita increased by 17 percentage points, similar to Poland.

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More than 7,000 companies benefited from SME Invest program

Prime Minister Ludovic Orban announced on Sunday evening that 7,000 companies have so far benefited from the SME Invest program. The total value of guarantees granted to applicants is RON 6 billion. "Romania's economy has been affected, as have all economies. Throughout this period we have systematically taken steps to help companies, employees. We took measures to inject liquidity into companies, to protect companies and employees," said Ludovic Orban on Sunday.

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Cereals exports up 42% in Q1, 2020

Romania exported EUR 822.4 million worth of cereals in the first three months of this year, up 42.4% on an annual basis, according to the National Statistics Institute (INS). On the other hand, cereals imports reached RON 167.6 million, up 38% year-on-year.

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Financial News (2)

Investment banks urge clients to buy gold

Gold is becoming more and more attractive to large investors, as the uncertainty plaguing the stock market trends becomes more and more chronic, amplified by major questions about the world's economies and doubts about the effect of government policies in the context of this pandemic. The price of gold has surged to an 8-year high, hovering above USD 1,730 / ounce.

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New mortgages down 12% in April

The value of new mortgages, both RON- and EUR-denominated, exceeded RON 4.6 billion in the first four months of 2020, up 24.7% on an annual basis. However, the new mortgages granted in April amounted to only RON 1.1 billion, down 12% from the previous month.

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Investment News (1)

Government to spend EUR 1 billion on gas distribution networks

Prime Minister Ludovic Orban announced on Saturday that the authorities intend to invest EUR 1 billion worth of European funds in expanding the gas supply network with the purpose of doubling the number of households connected to this network. "Our decision was to use European funds to support local communities in financing local gas investment projects. We will allocate EUR 1 billion in European funds over the next seven years to finance gas distribution projects in Romania," said Orban.

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Politics (2)

Local election bill to be adopted next week

Prime Minister Ludovic Orban announced that the Cabinet would adopt next week the bill setting the local election date. The Cabinet proposed September 27 as the election day, provided that the pandemic situation does not worsen.

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PSD files complaint with CCR

The Social Democratic Party (PSD) has filed a complaint with the Constitutional Court of Romania regarding a possible conflict between the Parliament and the Cabinet over the latter's decision to extend the state of alert without the former's approval.

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Social (1)

Raed Arafat: "If numbers stay like this or go up, the state of alert must be extended"

"If the numbers remain the same or continue to rise, it is very likely that we will need to extend the situation we are in, so that we can manage it. Some countries have extended theirs until July or August. We need to understand one thing: we are in a fight with a virus, in a battle, in a war with a virus that will last, and I said this, all the experts said this, it will last about two years," said Arafat.

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