Daily Newsletter
22 November 2018
Summary
FIC (1) |
---|
Foreign investors: the Criminal Codes are impacting on the business environment
In a letter addressed to the Parliament representatives, Calin Popescu Tariceanu and Liviu Dragnea, and to the chairmen of the legal committees in the Senate and the Chamber of Deputies, as well as to Florin Iordache, chairman of the special committee that amended the justice laws and criminal codes, the Foreign Investors Council complains about the negative impact of the amendments to the Criminal Code and the Criminal Procedure Code on the business environment. “Following the analysis of the draft legislation, including proposed amendments to the Criminal Code and the Criminal Procedure Code, FIC believes that once enacted they will have negative effects on the business environment, especially taking into consideration the abuses and weakening of the sanctioning mechanism regarding civil servants, with whom each professional interacts in their work. The amendments are likely to generate distrust of the Romanian State’s ability to ensure the legality, stability and predictability of business relationships and the business environment in general, but also to protect the interests of companies and citizens operating in a transparent, correct, professional manner, with rigorous observance of legal provisions and undertaken commitments. At the same time, the adopted amendments may expose many companies to a risk of insolvency, as many of those under the capacity of injured parties in criminal cases who claim damages may not recover substantial losses especially caused by the corruption offences or offences at work". Top |
Macroeconomic News (4) |
---|
ING warns about public finance situation
ING Bank analysts warn that Romania may find itself in a difficult situation in the coming months, given that the fiscal policies and the state budget are in the worst post-crisis situation, while economic growth is slowing down and the country is preparing for elections. The big benefits granted by the state without structural reforms should further deepen the trade deficit, according to chief economist Ciprian Dascalu. Top |
Market services companies topped employee index
Last year, the market services companies topped the index of economic sectors based on the average number of employees (35.4%), followed by industrial companies (34.2% ), according to preliminary data released by the National Statistics Institute (INS) on Wednesday. Last year, 46.7% of the total number of active companies had market services as their the core business. Compared to 2016, the total number of companies increased by 5% to 525,660. Top |
92% of Romanian consumers trust economy
The confidence of Romanian consumers in the economy was 92% at the end of September, while the European Union reported an average of 87% and Italy logged a dismal 62%, said Iulia Pencea, consumer insight leader for the Balkans region at Nielsen Romania, at an event organized by the Italian Foreign Trade Agency (ICE) yesterday. "When I think of Romania, I think opportunity," said Pencea. Top |
Industry added value: From record to wariness
The gross added value of the industrial sector could exceed this year the nominal record of the past 11 years, which was set in 2017. The one condition is to make sure that the wariness of entrepreneurs regarding the sector's development is not justified. The sentiment was revealed by the Industrial Barometer. Last year, the gross value added by the industrial sector was over EUR 45.5 billion, the highest level since 2007 and above the record set in 2011, when the indicator stood at EUR 42.5 billion, according to Eurostat data. Top |
Financial News (2) |
---|
Isarescu: "We are interested in inflation because of the interest rates"
The National Bank has not made an obsession of inflation, but is interested in it because of the interest rates, according to statements made by BNR Governor Mugur Isarescu at the "Romania 2030: How do we close the gap with Western Europe?" conference. "We are interested in inflation and credibility because of the interest rates. Otherwise, if we do not bring down the inflation rate, then interest rates will go up, whether we want them or not, and this will discourage economic growth. This is a very fine line the National Bank must walk," said Isarescu. Top |
Prima Casa in danger from debtor relief
Debtor relief will kill the Prima Casa program, according to bankers. If debtor relief is applied to state-backed loans, the program will shut down. Moreover, because of the recent state largess, there's a real danger that the state may find itself unable to finance these guarantees. Top |
Investment News (1) |
---|
Grindeanu, ANCOM: 5G will create more than 250,000 jobs in Romania
Fifth generation (5G) communications technology will create more than 250,000 jobs and generate EUR 4.7 billion in revenues for Romania by 2023, according to Sorin Grindeanu, President of the Communications Regulatory Authority (ANCOM). "The implementation of 5G technology requires EUR 2.3 billion in estimated investments, not including the cost of the licenses to be auctioned in 2019. These figures refer to investments related to the current infrastructure owned by the operators. We want 5G services to be commercially available from local operators in 2020," Grindeanu said. Top |
Legislative News (1) |
---|
Chamber passes amended offshore operations bill
The Chamber of Deputies passed Decree 11/2017, amending and completing Law no. 165/2016 on the safety of offshore oil operations. "Operators are required to sign with the competent authority agreements regarding the safety of oil operations and to make the agreed upon expenses for the development of prevention and/or response capabilities in the event of major accidents, monitoring environment factors, know-how, expertise, legislation and impact studies, technology transfer and professional training necessary to fulfill its attributions in the performance of its duties," reads the bill. Top |
Politics (2) |
---|
Dragnea says he discussed rule of law with EP delegation
PSD leader Liviu Dragnea said that he had the rule of law issue with the European Parliament delegation and that the two sides had agreed on very close cooperation based on arguments, instead of receiving "some papers, resolutions or themes". "We support with all determination the consolidation of the rule of law in Romania, providing that fundamental human rights are observed," said Dragnea. Top |
The Executive Committee of the Social Democratic Party (PSD) decided unanimously on Wednesday to nominate Lia Olguta Vasilescu for the position of Minister of Development and Mircea Draghici, the PSD treasurer, for Minister of Transport. The decision comes one day after President Iohannis refused to appoint Olguta Vasilescu to the Transport Ministry and Ilan Laufer to the Ministry of Development. Top |
Social (1) |
---|
The special character of Romanian poverty
Romania remained in 2017 the EU member country with the largest share of children in poverty or at risk of social exclusion, according to data provided by Eurostat. "Boasting" a 41.7% rate, Romania retained the first position in this unwanted poverty index, ahead of Bulgaria (41.6%) and far above Greece (36.2%), Italy (32.1%), and Hungary (31.6%). Top |