Daily Newsletter - 24 May 2022


Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Davos World Economic Forum warned of multiple threats to global economy
The political and economic elite reunited at Davos World Economic Forum warned of multiple threats to global economy, signalling the risk of global recession. The World Economic Forum meeting comes amid accelerating inflation, which has reached record levels for decades in major economies including the US, UK and Europe. Price increases have undermined consumer confidence and shaken global financial markets, prompting central banks, including the US Federal Reserve, to raise interest rates. Meanwhile, the repercussions on oil and food markets of the Russian invasion of Ukraine that started in February and the blockages generated by COVID-19 in China have exacerbated the crisis.
Reducing administrative pressure on companies can accelerate economic recovery
Prime Minister Nicolae Ciucă stated on Monday, upon the presentation of the final report of the project "Comprehensive redesign of the licensing system in Romania", that reducing administrative pressure on the business environment was the way to accelerate economic recovery. He pointed out that the presentation of this final report was "a particularly important opportunity to have a timely and useful analysis on the table, as it supports all the efforts made by the Government to reduce bureaucracy, implement digitalization and, as a final objective, support those who want to invest in Romania".
European Commission assessed macroeconomic imbalances for 12 EU member states
The European Commission announced on Monday that it had assessed the existence of macroeconomic imbalances for the 12 EU member states selected for in-depth reviews in the 2022 Alert Mechanism Report (AMR). Seven countries - Romania, Germany, Spain, France, the Netherlands, Portugal and Sweden - continue to experience imbalances, according to a press release issued by the European Executive. On the other hand, Ireland and Croatia are no longer experiencing imbalances, as their debt ratios have declined significantly over years and continue to display strong downward dynamics. Overall, vulnerabilities are receding and are falling below their pre-pandemic levels in various member states, justifying a revision of the classification of imbalances in two cases, where also notable policy progress has been made, the European Commission indicates.
Omniasig recorded over RON 500 million gross underwritten premiums in Q1/2022
Omniasig, the biggest company part of the Austrian group Vienna Insurance Group (VIG), recorded over RON 500 million gross underwritten premiums at the end of the first three months of 2022, up by 40% year-on-year, according to the information provided by company representatives. Automotive insurance policies, which include Casco and RCA, recorded an increase in both gross underwritten premiums and paid compensations during the period January-March 2022. Total compensations paid by Omniasig in Q1 of 2022 exceeded RON 250 million.
NBR has set up a Payments Committee
The National Bank of Romania (NBR)’s Board of Directors has set up a Payments Committee, which will have a consultative role, and which will have to identify the measures needed to strengthen the retail payments market and develop an integrated payments market, among other things. The new structure will support NBR’s Board of Directors in fulfilling its tasks with regard to promoting and monitoring the proper operation of payment systems and payment instruments in Romania, as well as those related to the authorization and supervision of payment services and instruments.
ING Bank Romania has launched insurance with financial protection
ING Bank Romania has launched, in partnership with NN Romania, the ING Salary Protect insurance policy, which provides a backup plan in the event of an unexpected incident and covers situations in which a client may lose their monthly income through unemployment, disability or extended sick leave. The insurance can be contracted over a 12-month period, with automatic annual renewal, and costs RON 15, 30 or 45. In case of unemployment or extended sick leave, the insured sum is RON 500, 1,000 or 1,500 per month for up to six months, depending on the selected package.
Hyundai Motor Group will invest over USD 10 billion in the USA by 2025
Hyundai Motor Group will invest another USD 5 billion in the United States by 2025 to strengthen collaboration with US companies in the advanced technology sector, adding to the USD 5 billion investments announced on Friday for electric vehicles and batteries. The new investments, announced during a visit to Seoul by President Joe Biden, are for robotics, urban air mobility, autonomous driving and artificial intelligence, the group has reported.
Cernavodă City Hall will invest in Axiopolis Sports Club
Cernavodă City Hall plans to invest more than RON 1 million in sports. The local authority has thus launched a procedure for the acquisition of the works execution service for the "Modernization of sports fields and fencing of Axiopolis Sports Club". The estimated value of works is RON 1,273,559.13, VAT not excluded.
AFI Europe Romania has renovated AFI Lakeview office building
AFI Europe Romania announced on Monday that it had inaugurated the recently renovated AFI Lakeview office building, following a nearly EUR 2 million investment. AFI Lakeview has modern A Class office spaces, with 25,500 square meters GLA, complex architecture and 2 levels of the building. According to a recent study conducted by BestJobs and amid the lifting of pandemic-related restrictions, 62% of the surveyed Romanian employees would choose to work from a desk the office or at least in a hybrid format.
The Senate has adopted a new draft law
The Senate has adopted a draft law initiated by unaffiliated MPs and currently supported by PSD, PNL, UDMR, through which autonomous administrations and companies where the state is a full or majority shareholder have the obligation to transfer, at inventory value, the ownership of land and other assets in their patrimony to the administrative-territorial units whose territorial limits they are located in, upon the latter’s request. The initiators of the draft law spoke of "derelict land" or "buildings not used" by the companies in question, which could then be included in local development projects, financed from European funds, for example.
Government approves decision on European Projects and Investments Ministry reorganization
On Monday, the Government approved a draft decision on the reorganization of the Ministry of European Projects and Investments, a document that provides for an increase in the number of executive and management positions, and the creation of a general directorate for the implementation of the National Recovery and Resilience Plan, Minister Marcel Bolos has announced. As a result, the number of positions in the Ministry will grow by 30%, to 1,943 people, in order to manage EUR 96 billion European funds, the minister has explained.
European News 
Romania’s Foreign Affairs Ministry reacted to the comments made by Hungarian President
Romania’s Foreign Affairs Ministry immediately responded to the comments made by Hungary’s recently appointed president about representing Hungarians no matter where they lived, saying such comments do "not meet European standards". After meeting Romanian Deputy Prime Minister Kelemen Hunor, leader of the Democratic Alliance of Hungarians in Romania (RMDSZ), Novák Katalin posted on social media that she considered her priority to represent all Hungarians.
Half of Romanians want to buy electric cars to reduce fuel costs
46% of Romanians would buy a hybrid or an electric car. The information comes from a study conducted by Deloitte regarding car sales in 2022, in 25 countries. Most of those who prefer eco-friendly car models would make such a purchase for lower fuel costs, 49% would be motivated by environmental protection, 47% by personal health, and 40% would take advantage of government incentives.
More than 70% of employers in EMEA region are turning to the hybrid working system
More than 70% of employers in the EMEA (Europe, Middle East and Africa) region are turning to the hybrid working system, according to CBRE’s annual Office Occupier Survey. In Romania, about 60% of respondents to an online survey conducted by CBRE Romania in the second half of April said they would rather work in an office than from home. On the other hand, 40% of Romanians still prefer to work from home or in a hybrid system.