Daily Newsletter
27 August 2018
Summary
Macroeconomic News (3) |
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Pressure mounts on state budget
The state budget is coming under more and more pressure and, despite a so-called "fiscal stability", the coming months may bring changes to the fiscal regulations, according to Dan Badin, Tax and Legal coordinating partner at Deloitte Romania. "The economy is showing no signs of growing at the 5% rate the budget spending is based on," said Badin. Top |
Moody's: Romania's economy growth unsustainable
Moody's Investors Service maintained its stable outlook for the Romanian economy. According to the rating agency, the positive arguments are offset by the country's limited progress in structural reforms and governance. Top |
Romania and Bulgaria have lowest consumer goods and services prices in EU
Romanian prices for consumer goods and services were 52% below the European Union average in 2017, according to data released by Eurostat on Friday. Bulgaria was the only EU member state to report even lower prices (56% below the EU average). By comparison, local consumer prices were 65% below the EU average in the year 2000. Top |
Financial News (2) |
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The aggregated value of deposits opened by non-government residents dropped 0.8% in July, compared to the previous month, reaching a total of RON 310.4 billion. However, the annualized growth rate is 6.1%, according to data released by the National Bank of Romania (BNR) on Friday. This is the second monthly drop in deposits in two years. Top |
Private borrowing up 6.6% in July
The aggregated value of private borrowing, both retail and corporate, reached RON 243.3 billion in July, up 0.4% on a monthly basis and up 6.6% compared to the corresponding month of 2017. Corporate borrowing stagnated, while the growth rate of mortgage borrowing continued to fall. On the other hand, consumer loans continue to grow apace. Top |
Legislative News (1) |
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Internship law came into force
Beginning with August 18, all the companies and public entities that receive interns must pay them a monthly internship fee worth at least RON 580 (half of the gross minimum salary) and sign an internship contract lasting no ore than six months, according to Law 176/2018. Top |
Politics (2) |
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Dacian Ciolos accuses Minister of Justice of trying to pressure prosecutors
Dacian Ciolos, founder of the Together Romania Movement (RO+), stated that the Minister of Justice, Tudorel Toader, is trying to "exert pressure in connection with the case focusing on the violent events of August 10 and to sack the heads of the General Parquet". Top |
PNL to oppose budget adjustment
Ludovic Orban announced that the National Liberal Party (PNL) would not support the upcoming adjustment of the state bugdget, which he sees as "a big lie". "We did not support the state budget. The current adjustment is certainly a big lie," said Orban. Top |
Social (2) |
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Romania's middle class is under 10% of population
Only 1% of Romania's population meets the international standards for belonging to the middle class, according to a study published by The Washington Post. National statistics put the middle class toward 10%, but they also show the poverty affecting a third of households. Top |
Almost 350,000 pigs have been killed since the beginning of the swine fever outbreak. Hundreds of jobs were lost and the situation is not showing any signs of improvement, despite the authorities' statements. Top |