News

Daily Newsletter - 25 October 2021

Summary

Macroeconomic (4)
Financial (3)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Macroeconomic 
Cristian Popa estimates economic growth for next year
Cristian Popa, a member of the National Bank of Romania (NBR)’s Board of Directors, has stated that he estimates economic growth in line with or slightly above the potential, somewhere around the average of the past 20 years. He has pointed out that agriculture followed an upward trend in both Q3 and Q4. The specialist has also indicated that industry is suffering, and Romania can expect services to suffer as well, because of the restrictions imposed due to the pandemic; however, not to last year’s extent.
Prices of consumer goods keep growing
Prices of consumer goods keep growing, as many companies in industry rely on price increases to compensate for the higher costs generated by the blockages in the global supply chain, and executives and analysts warn that the trend will continue next year. Furthermore, some analysts fear that the growing pressures for higher wages in developed economies could create an inflationary spiral like the one from the 1970s.
Fitch Ratings affirmed Romania’s sovereign rating at "BBB minus" with a negative outlook
On Friday, Fitch Ratings affirmed Romania’s sovereign rating at "BBB minus" with a negative outlook, the last rating in the "investment-grade" category (recommended for investments), according to a press release issued by the rating agency. The negative outlook reflects continued uncertainty regarding the implementation of policies to address structural fiscal imbalances over the medium term and the impact on Romania’s public finances from lingering pandemic risks and rising energy costs, Fitch indicated.
National environmental protection expenditures amounted to RON 15.7 billion in 2020
Environmental protection expenditures at national level amounted to RON 15.7 billion in 2020, representing about 1.5% of GDP, and waste management accounted for the biggest part of these expenditures (71.6), according to data published by the National Institute of Statistics (INS) on Friday. At national level, public administration’s investments have the largest share in total investments for environmental protection (54.5%), followed by non-specialized producers’ investments (31%) and specialized producers’ investments (14.5%).
Financial 
BRD is preparing for a future of hybrid work
BRD - Groupe Societe Generale is preparing for a future of hybrid work. Employees will be able to work from home for half a week, even if they work in departments that involve customer interactions. Moreover, the employees of BCR, the second biggest bank on the local market asset-wise, have also been working within a flexible system since September 2021, and the hybrid solution proposed by the bank includes the possibility for headquarters employees to work from home for minimum one day and maximum three days a week, depending on the specifics of their activity.
The value of the Allianz brand grew by 17% in one year
The value of the Allianz brand grew by 17% in one year, having exceeded USD 15 billion, according to the ranking made by Best Global Brands 2021, launched by the consultancy firm Interbrand. Allianz has thus climbed five places compared to 2020, to the 34th place. According to Interbrand, Allianz’s advance in the classification is due to its strong performance and prospects, to the increase in revenues attributed to the brand and to the latter’s solidity.
Pillar 2 mandatory private pension funds had RON 87 billion assets at the end of September
Pillar 2 mandatory private pension funds, with significant cumulated holdings in companies listed on Bucharest Stock Exchange, had RON 87 billion total assets at the end of September 2021, up by RON 12 billion against the end of 2020, according to the latest data from the Financial Supervisory Authority (FSA). Assets have thus grown by about 16% since the beginning of this year. On the other hand, Pillar 2 pension funds’ assets increased by about RON 800 million (the equivalent of about 6%) in September, when Bucharest Stock Exchange was up nearly 4%.
Investment 
Galati County Hospital will have two particle accelerators for treating cancer
The biggest hospital in the south-east of Romania, Galati County Hospital will have two particle accelerators for treating cancer. The first such piece of equipment has been in operation for about two years, and works are being carried out on a second bunker for the particle accelerator. The value of the investment amounts to USD 2.1 million.
A new stopping point for trains will be opened in Otopeni North
CFR Infrastructure has announced that it will open a stopping point for trains in the northern part of the town of Otopeni, near Bucharest, starting from Monday, 25 October. The railway construction is part of the project aimed at doubling the Mogoşoaia - Baloteşti rail line, financed from the state budget, with a contractual value of RON 50.5 million. The Otopeni North stopping point is located between Mogoşoaia and Baloteşti stations and is a new two-level construction which ensures direct access to the two platforms.
Rome is drawing up an offer to try to convince Intel to invest billions of euros in a plant
Rome is drawing up an offer to try to convince Intel to invest billions of euros in an advanced chipmaking plant in Italy, as Germany emerges as frontrunner to land an even bigger mega-factory planned by the U.S. company. The plants would be part of a drive by the U.S. group to build cutting-edge manufacturing capacity in Europe to help avoid future supply shortages of the kind currently crippling the automotive industry in particular.
Legislative 
The Romanian state will bear all the costs for the repatriation of patients infected with coronavirus
According to the decision adopted during the meeting on Saturday, 23 October, the Foreign Affairs Ministry will cover all the costs for the repatriation of coronavirus-infected patients who have been transferred to hospitals abroad, after they are discharged, even if they need further medical assistance. Moreover, Romania will pay for the repatriation of people who died after being transferred abroad.
The winter program in the energy sector was approved by Government decision
The Government Decision approving the measures regarding the level of safety and security in the National Electrical Power System’s operation, as well as the measures related to the National Electrical Power System’s security stocks referring to fuels and the volume of water in accumulation lakes for the period 1 November 2021 – 31 March 2022 was adopted upon the Energy Ministry’s proposal during the government meeting on Friday, 22 October. Moreover, the same decision establishes the Winter Energy Command Center, which will monitor the functioning of the National Power System and the National Natural Gas Transport System during the period 1 November 2021 – 31 March 2022.
European News 
EU leaders stressed the need to make digital regulation more innovation-friendly
EU leaders stressed the need to make digital regulation more innovation-friendly, but the digital agenda remained at the margins of the European Council summit. EU heads of state and governments quickly rubber-stamped the conclusions related to digital policies during the Council meeting that concluded on Friday, 22 October. Digital was the final point on the agenda which was dominated by the energy crisis, Poland, and migration policy.
Social 
More than 300,000 doses of Pfizer vaccine will get to Romania on Monday
A new tranche of Pfizer BioNTech vaccines, consisting of 304,200 doses, will arrive in Romania on Monday, 25 October. The vaccines will be delivered by air and will reach the airports of Otopeni, Cluj-Napoca and Timisoara. 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.
Government has approved the amendments to the decision extending the state of alert
The Romanian Government has approved the amendments to the decision extending the state of alert, having established additional measures to keep the COVID-19 pandemic under control. Private events will be banned, the protective face mask will become mandatory and the green certificate will be required for many activities for a 30-day period starting from Monday, 25 October. All the measures shall apply regardless of the 14-day cumulated incidence rate. According to the head of the Department for Emergency Situations, Raed Arafat, traffic will be banned in the entire country between 22:00 and 5:00, except for people who got vaccinated or have recovered from the disease, who must present the green certificate to authorities.