News

Daily Newsletter - 22 September 2022

Summary

FIC (2)
Macroeconomic (4)
Financial (4)
Investment (3)
Legislative (4)
European News (1)
Social (2)
FIC 
Foreign Investors Council launched Va Urma project with the participation of the Prime minister

FIC launched the 2022 edition of Va Urma (https://vaurma.ro) with the participation of the Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of the Government and Parliament, international institutions, and economic leaders. The event was a first step in setting country directions agreed and supported by the authorities, representative international institutions, and the business environment. The participation of the Prime Minister confirms the partnership and the relationship of trust between the Government of Romania and the Foreign Investors Council. 

The "Va Urma" project represents an economic development model for the next 20 years that includes several scenarios. Va Urma emphasises the multiple advantages of combining private (foreign and domestic) and public investments together with measures aiming to stimulate digitisation and innovation. The key elements of the programme comprise: improving institutional capacity and the efficiency of state-owned companies; protecting human capital by facilitating access to jobs, education and health; transforming the energy mix in the directions established by the Green Deal at European level and the development of energy infrastructure.

FIC Coordination: Coalition for Romania's Development meeting with PM Nicolae Ciucă on Tuesday
Daniel Anghel (FIC Board Member) chaired the delegation of the Coalition for Romania’s Development at the meeting with the Prime Minister Nicolae Ciucă held on 20 September. Ramona Jurubita, FIC Vice Presindet also joined the discussion. The main topics adressed were tax reform, Romania’s accession to the Schengen Area, Structural Funds and the National Recovery and Resilience Plan (PNRR). According to a press release issued by the Government, the protection of vulnerable consumers and of legal entity consumers, as well as risk security and reforms were also among the topics debated on the same occasion.

Prime Minister Nicolae-Ionel Ciuca’s meeting with the representatives of the Coalition for the Development of Romania

Prime Minister Nicolae-Ionel Ciuca’s meeting with the representatives of the Coalition for the Development of Romania

Prime Minister Nicolae-Ionel Ciuca’s meeting with the representatives of the Coalition for the Development of Romania

Ciucă, after the meeting with the representatives of the Coalition for the Development of Romania

Macroeconomic 
Draft budget for 2023 will be adopted by the Government no later than 27 October
Prime Minister Nicolae Ciucă announced on Wednesday, 21 September that the Government would adopt the draft budget for 2023 no later than 27 October. The Prime Minister pointed out that through the new budget, the Government would make sure the budget deficit and inflation were properly managed while identifying budgetary resources to increase salaries and pensions from 2023. PM Ciucă also said that the Ministry of Finance in coordination with the main credit release authorities would present the budget for its first reading no later than 20 October.
Deutsche Bank forecasts deep recession in Europe
Hopes for a "mild recession" in Europe this winter have been abandoned by Deutsche Bank strategists, who have dramatically slashed their 2023 growth forecasts. The bank now expects EU-area growth to decline 2.2% in 2023, from a previous forecast for a 0.3% decline. That downgrade comes after the indefinite closure of the Nord Stream 1 pipeline for Russian gas into Europe that was announced in early September.
EximBank participates in drafting of Initial Memorandum for Romania’s Accession to OECD
EximBank has announced that it is participating in the drafting of the Initial Memorandum for Romania’s Accession to the Organization for Economic Cooperation and Development (OECD), being the only specialized financial institution with a role to promote exports in accordance with the standards of the OECD Agreement on export loans benefitting from official support. The bank says it has extensive experience in establishing common technical positions in the EU regarding financial instruments through which governments can contribute to the development of global trade, which allows for a rapid integration of OECD practices for boosting exports and harmonizing local companies’ policies with the organization’s requirements.
The process of Romania’s accession to OECD has started in the West Region as well
A total of 42 regional players from the public administration, private and academic sectors, as well as representatives of NGOs participated in the workshop on regional strategic planning and innovation services, organized by the OECD in partnership with ROREG - Association of Regional Development Agencies in Romania, in Timişoara, according to a press release. The Regional Development Agency for the Western Region (ADR Vest) is the first regional agency in Romania to implement this series of focus groups and workshops at regional level, important in the process of Romania’s accession to the above-mentioned organization.
Financial 
Raiffeisen Bank has increased interest rates on RON-denominated deposits
Raiffeisen Bank has increased interest rates on RON-denominated deposits, offering an interest rate of 3% per year on the Super Access Plus savings account and 6% on the three-month deposit. The highest interest in RON paid by Raiffeisen Bank is 7% per year, for two-year term deposits, The six-month term deposit, Flexidepozit - a product that allows multiple subsequent top-ups and a partial withdrawal - now has an interest rate of 6.25% per year.
tbi bank launches a new RON-denominated five-month deposit with 10% interest
tbi bank, a challenger bank from South-Eastern Europe, has added a new RON-denominated five-month deposit to its local portfolio, with an interest rate of 10%, and has updated all short-term interest rates amid the rising inflation. As a result, the institution now offers several maturities, with interest rates ranging from 7% to 10%. The new five-month deposit is available to both online and new offline customers, and the offer is valid until the end of the year, according to the information transmitted by tbi bank officials on Wednesday.
CEC Bank adds a multicurrency card to its product portfolio
CEC Bank has launched the multicurrency card offering customers direct access to accounts in ten currencies and allowing them to make payments at merchants and withdraw money without paying any fees and costs associated with the currency exchange. According to CEC Bank officials, the Visa Multicurrency debit card for individuals can have up to ten associated accounts in RON, euro and other currencies and has zero management fees and zero fees for withdrawals from ATMs in Romania and the European Union. The nine foreign currencies that can be associated with the VISA Multicurrency Debit Card are Euro, US Dollar, Canadian Dollar, Pound Sterling, Swiss Franc, Danish Krone, Swedish Krona, Forint and Zloty.
UniCredit and Teach For All are joining forces to support education
UniCredit and Teach For All are joining forces to promote education for children within a pan-European partnership covering seven countries where UniCredit is present, i.e. Austria, Bulgaria, Germany, Italy, Romania, Slovakia, and the partnership will shortly be extended to Teach For Serbia, which is taking steps to join the global Teach For All network in the following months, according to a press release. This new alliance will target a joint approach, focusing on innovation and inclusion, to achieve results and foster the potential of European young people.
Investment 
Economy Minister has announced that more money will be invested in the defense industry
Economy Minister Florin Spătaru has announced that more money will be invested in the defense industry. The Romanian Government has thus allocated an additional RON 25 million from the State Budget Reserve Fund available for 2022. This amount will ensure the financing of the necessary activities to be carried out in the following period. Moreover, it will allow, as a financial support measure, maintaining jobs, retaining specialists in the productive circuit and fulfilling the requirements of the National Defence System Forces.
Ministry of Development invests over RON 100 million in building a new student dormitory
On Tuesday, 20 September, Development, Public Works and Administration Minister Cseke Attila participated in the signing of the contract for the design and execution of a student dormitory at the Polytechnic University in Bucharest. The contract has a total value of RON 101,803,241.16, ensured by the Ministry of Development. The building will be equipped with reading rooms, kitchenettes and dining areas, laundry and drying rooms, administrative spaces, technical spaces, as well as four lifts that can be used by people with disabilities as well.
Penny continues its expansion plan by opening a new store in Călăraşi
Penny, one of the most active retailers in Romania, continues its expansion plan by opening a new store in Călăraşi. All stores in Penny network will be recertified every three years. This way, the company is setting up a policy aimed at monitoring and improving its stores’ sustainability. Moreover, maintenance and investment plans over time will also be analyzed in terms of their impact on stores’ sustainability in relation to the communities they are integrated in and to the built and natural environment.
Legislative 
Government adopted a decision approving the National Strategy on Circular Economy
The Romanian Government adopted, during the meeting on Wednesday, 21 September, the National Strategy on Circular Economy, drawn up under the coordination of the Department for Sustainable Development, according to a press release. The document provides an overview of 14 economic sectors in Romania in terms of their circularity potential, setting a clear general direction to accelerate the transition from a linear to a circular economic model. The success indicator for this transition is the decoupling of economic development from natural resource use and environmental degradation.
MP Daniel Rusu initiated a draft law to reduce the number of MPs to 300
Non-affiliated MP Daniel Rusu announced on Wednesday, 21 September that he had initiated a draft law to reduce the number of MPs to 300, as voted in the 2009 referendum. According to the draft law, the representation norm for the Chamber of Deputies is of one deputy per 101,000 inhabitants, while the representation norm for the Senate is one senator per 203,000 inhabitants.
CCR debated law exempting staff paid from public funds from the payment of certain sums
On Wednesday, 21 September 2022, the Constitutional Court of Romania (CCR) debated President Klaus Iohannis’s challenge to the Law exempting the personnel paid from public funds from the payment of certain amounts representing salary income. The Head of State indicated that the exemption from payment had targeted amounts representing income from salaries and assimilated to salaries according to the provisions of Article 76 of Law 227/2015 regarding the Fiscal Code, with subsequent amendments and additions, or from social assistance, amounts considered to be unlawfully received and which the personnel must return after the Court of Auditors or other structures or institutions with similar control attributions had acknowledged salary prejudices.
Ministry of Development implements new measures to streamline public services
The Romanian Government approved, during the meeting on Wednesday, 21 September 2022, a draft law completing Government Emergency Ordinance (OUG) 57/2019 on the Administrative Code, upon the Ministry of Development, Public Works and Administration’s proposal. A new mechanism of cooperation and association between administrative-territorial units (UAT) is created through this normative act. It allows establishing administrative consortia, without legal personality, to carry out activities necessary for the exercise of legal powers of certain UATs with insufficient administrative capacity and boosts association at the level of local public administration and the transfer of expertise and unitary practices.
European News 
Romania to continue fuel support scheme for 3 extra months
The scheme that was launched in July to reduce the price of gasoline and diesel and was set to end in September will be extended for another three months, the coalition government has decided. At the start of July, the government and the oil companies initiated a measure to reduce the price of fuels by RON 0.5 (EUR 0.1) per liter. The measure is supported in equal terms by the state budget and oil companies. Before the decision to prolong the measure was taken, discussions within the government coalition focused on only maintaining the measure for diesel prices. However, the decision was to continue applying the measure to both fuel types.
Social 
Money matters more than free time for Gen Z and Millennials
The pandemic has brought the future of work closer and has transformed the way people relate to jobs. With Millennials predominant on the labor market and the introduction of Gen Z employees, organizational culture has also changed, as bigger focus is being placed on wellbeing and flexibility. However, 53% of Gen Z young people and 45% of Millennials would choose to earn a higher income that allows them to maintain their comfortable, carefree lifestyle over more vacation days, according to a BestJobs survey.
A total of 45,062 jobs are vacant at national level
A total of 45,062 jobs are vacant at national level and another 196 jobs are available in the European Economic Area (EEA), through the Eures network, according to data published by the National Employment Agency (ANOFM) on Wednesday. Of the over 45,000 vacant jobs, 10,565 are available for people with vocational education and 21,767 jobs are for people with no education or with primary/secondary education.