News

Daily Newsletter - 3 December 2018

Summary

Macroeconomic News (3)

AFIR: All PNDR 2020 sub-measure payment applications to be handled online

The Rural Investment Financing Agency (AFIR) announced on Friday that it would extend the deadline for accepting payment requests from beneficiaries of EU grants through the new online module designed to authorize payment to all investment projects financed under the 2020 National Rural Development Program (PNDR).

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Onshore tax changes affect industry, prices

The proposed changes to the onshore taxation regime, which were recently analyzed by the Parliament, will affect both the Romanian natural gas extraction and processing industry and the energy consumers' wallets, according to representatives of the Romanian Association of Oil Exploration and Production Companies (ROPEPCA). During the debates on windfall revenue taxation of the specialized commissions of the Chamber of Deputies, held on November 27, the members of the Industry and Services Commission and the Budget, Finance and Banking Commission proposed eliminating the possibility of deducting the royalty from the windfall revenue tax.

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Budget revenues at all-time low

Romania ranked in the penultimate spot among EU member states in 2017 regarding the GDP share of budget revenues, according to Eurostat data. With only 25.8%, Romania had a bigger share than Ireland (23.5%), but Ireland's GDP is being expanded by multinational companies moving their headquarters there in anticipation of Brexit.

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Financial News (3)

BNR launches centennial banknote

The National Bank of Romania (NBR) will launch today an anniversary collector's banknote with a nominal value of RON 100, dedicated to the 100th anniversary of the Grand Union of December 1, 1918. The banknote will be 147x82 mm (+/- 1 mm), predominantly blue, printed on a polymer medium, with a complex transparent window.

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Cabinet approves gROwth program

The Cabinet approved the draft decree granting a state premium of RON 600 per year to those who open individual savings accounts for their children and deposit at least RON 1,200 in those accounts every year. The interest rate on the account is 3%.

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CSALB boasts of advantages to clients

Officials from litigation resolution firm CSALB said clients who choose their services have at least three advantages over going to court: faster resolution time, win-win negotiations and zero costs. Last year, CSALB received more than 1,000 applications, most of them from debtors who had taken out CHF-denominated loans.

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Investment News (2)

Decathlon to open new stores

French retailer Decathlon will open two stores in Deva and Resita in the first part of next year and negotiate the expansion of its network to other cities in the country, according Gwen Hervo, expansion manager at Roumasport, the company operating the Decathlon brand in Romania.

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More than EUR 5 billion worth of FDI

"In fact, this sector is the engine of the region's development and, we can say, of the whole country, given that the automotive industry accounts for 13% of Romania's GDP and an even bigger slice of exports," according to Monica Biota, Audit Partner and PwC Romania and Office Coordinator in Timisoara. Timis county leads the foreign direct investment index of western counties, with EUR 3.5 billion, followed by Arad with EUR 1 billion.

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Legislative News (2)

Minister of Justice tries to dodge responsibility

The Minister of Justice, Tudorel Toader, said the compensatory appeal law had been drafted by the previous cabinet. He added that the impact study should have been carried out during the approval period, not during the implementation period.

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Good news for prospective home buyers

On Thursday, November 29, 2018, a bill was submitted to the Senate to amend the Construction Quality Act 10/1995, which will regulate the construction market for those who want to buy new homes.

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Politics (2)

PM Dancila speaks of unity

Prime Minister Viorica Dancila said on Saturday in an interview with TVR1 that the presidency of the European Union Council would be a very difficult one and that some challenges are lying ahead for Romania, including Brexit, the future of the EU post-Brexit, migration and terrorism. Dancila added that Romania is ready to take over the presidency of the Council of the European Union. During the interview, the prime minister reiterated the themes of the solemn Parliament sitting speech, stressing the need for unity and blasting the opposition for criticizing her.

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President Iohannis: We can do a reasonable job as EU Council president

President Iohannis granted an interview to Austrian daily Kurier, declaring himself to be a foe to anyone who undermines the fight against corruption and the rule of law in Romania. The president pointed to the current ruling alliance as an actor trying to undermine the fight against corruption. However, despite the difficult domestic situation, Iohannis thinks Romania can do a reasonable job as EU Council president.

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Social (1)

Number of heating aid beneficiaries plummets

The administrative increase of the minimum salary, which has led to an increase in revenues among the population, made a significant part of the vulnerable energy consumers no longer qualify for social heating aid. At the same time, the heating aid value has not been updated in seven years. The value of social heating aid has dropped by half during this period, while the prices of gas and firewood have grown significantly.

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