News

Daily Newsletter - 23 November 2021

Summary

Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (1)
European News (1)
Social (3)
Macroeconomic 
Ministry of Labor says there is no money left for payment of pensions and allowances for December
As of 26 November, there will be no money left for the payment of pensions, children’s allowances and other compensations for December, including those for energy bills, unless the Ministry of Finance approves the supplementation of the ministry’s budget by nearly RON 3 billion, according to a document issued by the Ministry of Labor. Interim Labor Minister Raluca Turcan previously criticized the dismissed Prime Minister Florin Cîţu, saying that he was even willing to play poker with the pension money. A document of the Ministry of Labor obtained by Economedia shows that the institution had requested the Ministry of Finance, led by Dan Vîlceanu, a close acquaintance of Florin Cîţu, to supplement the budget in order to pay pensions, children’s allowances, salary rights and energy bill compensations ever since 12 November.
67% of Romanian managers believe that national economy will worsen in the following near
Nearly three quarters of Romanian managers believe that national economy has negative prospects and that the situation will deteriorate in the following period, according to the latest Confidex study conducted by Impetum Group. The index illustrating managers’ confidence in economy, calculated by Confidex, has reached 41, much lower than in the previous edition, when it had stood at 47. Initiated shortly after the onset of the pandemic in order to provide a real picture of the current economy, Confidex has celebrated one year since it measures Romanian managers’ confidence in economy. In the previous four editions of Confidex, more than 1,500 managers from companies totaling over 150,000 employees answered the questionnaires.
ECB is powerless in the face of inflation and threats to financial stability
The European Central Bank is powerless in the face of inflation and threats to financial stability. This is the image projected, once more, both by the latest report on euro area’s financial stability and by recent statements of the institution’s president. The report shows that vulnerabilities continued to accumulate as medium-term systemic risk indicators kept growing.
Financial 
The volume of gross underwritten premiums on the life insurance segment reached significant values
The volume of gross underwritten premiums on the life insurance segment in H1/2021 recorded the highest values since 2017 up to date, having grown considerably, by more than 24% compared to the same period of the previous year, to over RON 1.34 billion, according to the National Union of Insurance and Reinsurance Companies in Romania (UNSAR). Moreover, the institution has indicated that the highest compensation paid based on a life insurance policy in 2020 exceeded RON 1.18 million.
Number of health insurance policies with second opinion coverage sold through brokers has doubled
Aegon Romania, the subsidiary of the international financial group Aegon, has recorded a double number of health insurance policies with second opinion coverage distributed through broker networks this year, compared to 2020, as well as an increase in the number of insurance policies with oncological diagnosis coverage, according to the information transmitted by the company on Monday. The insurer has concluded two new collaborations this year, namely with Destine Broker and with Fabrica de Asigurări, having currently reached a portfolio of over 20 brokerage companies in the country, including companies such as Campion Broker, Inter Broker, Millennium Broker, Safety Broker and Transilvania Broker.
BCR has launched an energy efficiency loan dedicated to companies
Banca Comercială Română has launched an energy efficiency loan dedicated to companies, which covers 85% of the estimated total investment, and which supports investments in solutions that ensure better management of energy and fuel consumption. The energy efficiency loan is intended for investments in the modernization of equipment and technological lines, but also for the thermal rehabilitation of buildings, including for high-efficiency cogeneration / trigeneration plants, which offer one of the highest energy returns on investments, according to the company’s representatives.
Investment 
A EUR 88 million investment will be launched for the construction of Baia Mare ring road
Maramureş County Council, in partnership with Baia Mare City Hall and the National Company for Road Infrastructure Administration (CNAIR) have launched the project for the construction of Baia Mare ring road, an investment estimated at EUR 88 million and supported from European funds through the Large Infrastructure Operational Program (POIM). The contract for drawing up the Feasibility Study, worth over RON 1.9 million, plus VAT, has been signed so far. According to technical data, the estimated length of the ring road is 30 kilometers.
Ensana hotel chain in Sovata plans to create 120 new rooms
The Ensana Health Spa Hotels group, which owns three hotels in Sovata resort in Mureş County, aims to reach an accommodation capacity of nearly 1,000 places within the next three to five years. The necessary investments amount to EUR 20-25 million, according to the statements made by the company’s representatives during a press conference. The three hotels in Sovata operate under the Ensana label and have a total of 800 accommodation places in almost 400 double rooms. Thus, with the new capacities, they will go towards 1,000 accommodation places.
Modernization works on the cable car from Deva Citadel are soon to start
Deva Municipal Maintenance and Management Service has announced the shutdown of the cable car facilitating access to the Deva Citadel, starting from Monday, 22 November 2021. The reason for the shutdown is the launch of works for the "Modernization of the inclined elevator, access to Deva Citadel" and the site’s handing over to the constructor. The over RON 15 million investment will target the modernization of the inclined transport installation, of the operating systems and their functional safety, the modernization of the two stations between which the cable car runs, as well as the arrangement and refurbishment of the waiting area in the pedestrian area at the foot of the Citadel Hill.
Legislative 
USR MPs have submitted an anti-plagiarism legislative initiative
Several MPs from Save Romania Union (USR) have submitted an anti-plagiarism legislative initiative to eliminate the possibility of voluntarily renouncing a PhD title. The signatories of the initiative are Simona Spătaru, Anca Dragu, Ştefan Pălărie, Irineu Darău, Silvia Dinică, Filip Havârneanu, Brian Cristian, Andrei Miftode and Liviu Toda. USR Senator Ştefan Pălărie has invited Sorin Cîmpeanu to sign this draft law.
European News 
Janusz Wojciechowksi will oppose all plans restricting farmers’ access to financing
EU Agriculture Commissioner Janusz Wojciechowksi has transmitted that he will oppose all plans restricting small and medium-sized farmers’ access to financing. Through several strategic plans, EU countries will set out how they intend to meet the nine EU-wide objectives of the Common Agricultural Policy (CAP) reform while at the same time responding to the needs of their farmers and rural communities.
Social 
Romania ranks 44th in the world in terms of quality of living and social welfare
Romania ranks 44th out of 168 countries, having climbed one place in the global ranking, but continues to rank last among the European Union member states, according to the 2021 Social Progress Index on quality of living and social welfare, conducted by the non-profit organization Social Progress Imperative with Deloitte’s support. Romania has thus obtained 78.41 points out of 100, a slightly higher score than in the previous year, and is among the countries included in the third category of the ranking, after Argentina, Hungary and Bulgaria.
Nearly 670,000 doses of Pfizer BioNTech vaccine have arrived in Romania
The National Committee for the Coordination of Anti-COVID-19 Vaccination Activities (CNCAV) announced on Monday that 690,300 doses of Pfizer BioNTech vaccine had arrived in the country. The vaccines were delivered by air and arrived at Otopeni airport. Transport to storage centers is ensured by the manufacturing company, including by land. The vaccination process thus continues both in the centers in Bucharest and in the rest of the country.
Half of families living in rural areas would cancel the holidays in 2021, due to lack of money
Half of families living in rural areas would cancel the holidays in 2021, due to lack of money, while one out of six parents does not even have RON 10 to buy a gift for their child, according to the results of a study conducted by World Vision Romania organization. Moreover, the specialized research data also indicate that one third of parents have less than RON 50 to buy a present, and a similar share could not afford a Christmas tree in 2020. In fact, one third of vulnerable families in rural areas did not have a Christmas tree in the same year, while over 50% of them had a poorly decorated Christmas tree. Only two out of ten families (20%) had the tree they wanted last year.