Daily Newsletter - 22 March 2019


FIC (1)

Interview with CDR coordinator Ramona Jurubita

Decree 114 should be repealed, instead of amended, because there is not enough time to adress all the problems it has produced, according to Ramona Jurubita, Coordinator of the Coalition for Romania's Development (CDR). Ramona Jurubita, Country Managing Partner at KPMG Romania and FIC Board member, also criticized the government's anti-foreign capital rhetoric and announced that many foreign investors have lost confidence in government policies: "This governance through emergency decrees is counterproductive and we all lose at the end of the day," said the Coordinator of CDR.


Macroeconomic News (3)

National payroll was EUR 80.3 billion in 2018

Romania reported a national payroll of EUR 80.3 billion in 2018, up EUR 12 billion compared to 2017 and the highest figure in history. The 17% increase in payroll was the highest in the European Union.


Consulting services market reached EUR 200 million

The national market for consulting services grew 6% to EUR 200 million last year, compared to 2017. The trend is expected to hold this year, according to a market study released yesterday. Romania is second only to Poland based on the value of consulting services offered by the biggest players.


Romanian GDP exceeded Portugal's in 2018

The Romanian economy overtook the Portuguese economy, in EUR-denominated current prices, last year. Portugal is half the size and half the population compared to Romania. Thanks to the 4.1% economic growth rate, Romania's GDP reached EUR 202 billion in 2018, compared to Portugal's EUR 201.5 billion.


Financial News (3)

Adrian Vasilescu, BNR: "Romania has the lowest credit sales in EU"

Adrian Vasilescu, strategy adviser with the National Bank of Romania (BNR), said the Cabinet and the Ministry of Finance "don't understand the cost of credit in Romania", even though they are making progress in understanding the ROBOR rate. "Certainly many debates in Romania start from the idea that banks are greedy. I dare say - and this is my point of view, not the National Bank's, even though many colleagues from the National Bank share my opinion - a bank is as greedy as the law allows it. It cannot go beyond that," said Vasilescu.


Romanians hold RON 176 billion in retail deposits

The value of retail bank deposits not covered by the Bank Deposit Guarantee Fund (FGDB) was more than RON 36.8 billion at the end of 2018. There were 35,181 depositors who kept more than RON 1 million each in deposits last year. The number of individuals who exceed FGDB's guarantee cap increased by 53% over the past three years.


Senate economy commission requests transparency increase

The Senate's Economy Commission has sent letters to Minister of Finance Teodorovici and BNR Governor Isarescu asking them to either increase the transparency of the ROBOR calculation method or to sever its connection to the interest rates of loans. Commission President Daniel Zamfir said the members have overwhelmingly concluded that the ROBOR rate is not rooted in real events.


Investment News (2)

Corina Cretu to attend country report presentation

Corina Cretu, the European Commissioner for Regional Policy, will be in Bucharest on Friday in order to attend the release of the 2019 country report for Romania, part of the European Semester, as well as the Investment Priorities for Romania - 2021-2027 conference. "In Romania, we think that European funds should be directed, in particular, towards innovation, SME competitiveness, the transition to a low-carbon economy, strategic transport networks and, last but not least, employment and social inclusion measures," said Commissioner Corina Cretu.


Thales opens Bucharest engineering excellence center

Thales, the biggest technology company in Europe, opened an engineering excellence center in Bucharest yesterday. The company is planning to hire more than 750 engineers at the center over the next three years, according to CEO Silviu Agapi.


Legislative News (2)

President Iohannis refers local public administration bill to CCR

President Klaus Iohannis has referred the local public administration bill to the Constitutional Court for being in breach of constitutional principles, both in the adoption process and in its content.


Land registry and real estate advertising fees to change

A bill was submitted to the Senate calling for updating the fees charged for land registry and real estate advertising services.


Politics (2)

Orban says EPP is cleaning up its act

Ludovic Orban, leader of the National Liberal Party (PNL), stated during a press conference that the European People Party is cleaning up its act and hinted that ALDE and the socialist group should do the same thing.


Viorica Dancila: "The European project needs a new boost"

The European project needs a new boost, vision for the future and long-term solutions, according to the speech delivered by Prime Minister Viorica Dancila on Thursday. The PM also noted that imbalances have weakened the population's confidence in the European project.


Social (1)

COTAR goes ahead with protest

The Romanian Confederation of Licensed Operators and Transporters held a protest in Bucharest's Victoriei Square yesterday. Hundreds of taxis, minibuses and buses converged on the square to demand the banning of Uber and other unlicensed transporters.