News

Daily Newsletter - 28 November 2022

Summary

FIC (1)
  • FIC Coordination: CDR press conference regarding Romania's accession to the Schengen area ( gardianulzilnic.ro )
Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (3)
European News (1)
Social (2)
FIC 
FIC Coordination: CDR press conference regarding Romania's accession to the Schengen area
On 8 December, the Justice and Home Affairs Council is to vote on the full participation of Bulgaria, Romania and Croatia to the Schengen area without internal border controls, the European Commission announced on Wednesday. The vote must be unanimous. However, a resolution backing Croatia’s Schengen accession exclusively, without mentioning Romania and Bulgaria, is also under discussion. FIC Board members, Daniel Anghel (CDR Coordinator) and Ramona Jurubita (FIC Vice-President) had interventions during the Coalition for the Development of Romania press conference - "Merităm în Schengen" held on 17 November. Daniel Anghel, Coordinator of the Coalition for the Development of Romania (CDR):"The accession to the Schengen area would contribute enormously to a positive perception of our country on the part of investors and would bring additional investments necessary for the development of Romania. Moreover, it would help Romanian businesses to reduce their costs for exports".
Macroeconomic 
Budget deficit grew to 3.37% of GDP after the first ten months of 2022
The general consolidated budget deficit grew to 3.37% of GDP after the first ten months of 2022, from 3.04% of GDP at the end of September, according to data published by the Ministry of Finance on Friday, 25 November. The budget deficit decreased by 0.68% during the interval January-October, compared to the same period of 2021, when it had stood at 4.06% of GDP, the aforementioned source also indicated. The revenues of the general consolidated budget amounted to RON 378.80 billion in the first ten months of 2022, up by 22.7% year-on-year.
Ministry of Finance borrowed RON 60 million from banks on Friday
On Friday, 25 November, the Ministry of Finance raised RON 60 million from banks, in addition to the auction on Thursday, when it had borrowed RON 1.003 billion at an interest rate of 8.06% per year, through a benchmark government bonds issue with 118-month residual maturity, according to data published by the National Bank of Romania (NBR). The nominal value of the additional issue was RON 60 million and banks submitted bids worth RON 170 million.
Arrears to the general consolidated budget grew by 2.2% in September 2022
Arrears to the general consolidated budget grew by 2.2% in September 2022, compared to the previous month, to RON 312.53 million, from RON 305.78 million, according to data published on the Finance Ministry (MF)’s website. Arrears of over 90 days decreased by 14.7%, from RON 145 million to RON 123.7 million, while arrears of over 120 days increased by 29.3%, from RON 103.7 million in August to RON 134.2 million in September 2022. In contrast, arrears of over 360 days decreased from RON 57 million to RON 54.6 million (-4.2%).
Financial 
Insurance industry paid €2 million compensations for RCA policies every calendar day in 2021
The Romanian insurance industry paid about EUR 2 million compensations for mandatory civil liability car insurance (RCA) policies alone every calendar day last year, almost double the amount paid in 2016, the National Union of Insurance and Reinsurance Companies in Romania (UNSAR) has announced. Insurers have indicated, based on data presented by the Romanian Police in the 2021 Road Safety Bulletin that Friday is the darkest day on Romania’s roads when most serious road accidents occur. More than 770 serious accidents occurred on Fridays in 2021.
Elena-Simona Goga and Cătălina-Georgeta Preda became members of Signal Iduna’s Board
Elena-Simona Goga and Cătălina-Georgeta Preda have received the Financial Supervisory Authority (ASF)’s authorization to become members of the Board of Directors of Signal Iduna Asigurări de Viaţă, formerly Ergo Asigurări de Viaţă, according to the information transmitted by the ASF. Signal Iduna received its last approval, from the ASF, to take over the two Ergo companies, namely Ergo Asigurări and Ergo Asigurări de Viță in February 2022, after having received the green light from the Competition Council. Elena-Simona Goga has served as Chief Financial Officer of Ergo Asigurări de Viaţă since January 2012 up to present.
OTP Bank Romania supports the first edition of Transylvanian Design Week
OTP Bank Romania will support the first edition of Transylvanian Design Week, the first such event dedicated to the entire community of designers in Transylvania, according to a press release. The event will take place in Miercurea Ciuc, during the period 18 February - 20 March 2023 and will be organized by the Csíki Székely Múzeum and Miercurea Ciuc City Hall, with OTP Bank Romania’s support. According to the cited source, the first edition of Transylvanian Design Week aims to create a collage together with artists in the field and the general public about what design means today in Transylvania.
Investment 
CFR Infrastructură announces RON 55.6 million will be invested for rail lines’ modernization
CFR Infrastructură has announced that RON 55.6 million will be invested in repair works on rail lines, railway track equipment and railway installations on the territory of SRCF Bucharest and Constanța regional railway divisions. Repair and maintenance works are being carried out on the components of the railway infrastructure and superstructure in the two regional railway divisions in the south of Romania, in order to improve traffic conditions on direct lines and in train stations, by lifting speed restrictions, enhancing rail and road safety, increasing operating capacity and avoiding the introduction of speed restrictions by bringing the lines within the designed parameters.
BMW to invest ERU 2 billion in Hungary
BMW has announced that it will also build an electric battery assembly plant next to its electric vehicle factory under construction in Debrecen (Hungary). Both units are due to open at the end of 2025. Construction works on the EV factory started six months ago, and 500 more people will be employed than initially announced on the entire industrial platform called BMW iFACTORY. BMW promises EUR 2 billion total investments at the unit in Debrecen, a town located not far from the Romanian border.
Lidl continues investments in Romania by inaugurating three new stores
Lidl continues its investments in Romania by inaugurating three new stores on 28 November (one in Bucharest, one in Vaslui and the third one in Pecica, Arad County). More than 65 jobs will be created with the opening of the three stores, the company has announced. The three newly inaugurated stores each have a sales area of around 1,300 square meters. The new Lidl store in Bucharest also has 100 parking spaces, the one in Vaslui has more than 130 parking spaces, while the new unit in Pecica offers customers more than 80 parking spaces.
Legislative 
NGOs will have a short period of time to challenge illegal building permits
The Senate has approved a draft law that gives non-governmental organizations (NGO) only a very short period of time to challenge in court building permits and urban planning documents suspected of having been issued illegally. The legislative initiative had been launched by 21 Liberal (PNL) MPs and was debated and approved within an emergency procedure in just two weeks by the Senate.
USR has submitted a draft law to simplify procedures for settling transport costs for pupils
Save Romania Union (USR) MPs have announced that they have submitted a draft law to simplify and decentralize procedures for settling transport costs for pupils, following consultations with several associations. The draft law stipulates that local authorities must provide free transport for pupils and then recover the allocated amounts from the Government, USR indicated in a press release issued on Sunday, 27 November.
Sanitas calls on government to fully apply the Public Sector Salary Law
The National Council of SANITAS Federation in Romania has called on the Romanian government to fully apply the Public Sector Salary Law, currently in force. The trade unionists have referred to the inflation rate, the highest one in the past 19 years, and to the fact that the cost of living has doubled compared to 2021. According to them, society as a whole has to cope with this cost-of-living crisis, "but it is unfair and immoral for employees with the lowest salaries in the two systems to be the main victims".
European News 
Most EU states agree on common position on Corporate Sustainability Due Diligence Directive
Ahead of a meeting of EU industry ministers, a majority of member state negotiators agreed on a common position on the Corporate Sustainability Due Diligence Directive (CSDDD) that aims to make companies liable for violations of human rights and environmental standards in their value chain. Industry ministers of the 27 EU member states will decide on 1 December whether the compromise agreement will stand, since not all member states are happy with the proposed outcome. The directive was proposed by the EU Commission in February this year, after which the proposal went to the EU Parliament and to the Council of EU member states so that each could agree on a common position on the file.
Social 
Vulnerable Romanians are to receive RON 1,400 for the payment of energy bills
The Ministry of Investments and European Projects (MIPE) has announced that vulnerable Romanians are to receive RON 1,400 for the payment of energy bills and social vouchers for the entire year 2023. In 2023, MIPE will offer vulnerable Romanians support for the payment of energy bills worth RON 700 twice a year, from European funds. The cards for cashing the aid will be issued and distributed by the Romanian National Post Company and the lists of beneficiaries will be drawn up by the Ministry of Labor and Social Solidarity.
National Tripartite Council agreed to raise minimum wage to RON 3,000
The Romanian government and social partners have agreed upon an increase in the minimum gross wage in economy to RON 3,000, of which RON 200 is exempt from tax and insurance contributions, following talks held at Victoria Palace, during the meeting of the National Tripartite Council for Social Dialog, which Prime Minister Nicolae Ciucă attended as well. According to the Executive, employers’ associations and trade unions’ proposals related to the increase in the minimum wage starting from 1 January 2023 were analyzed during the discussions.