The European Commission has called on Romania to reduce its budget
deficit to less than 3% of GDP within the next three years, to freeze
public expenditures, and to draw up a strategy to achieve these goals
by 15 September, according to the recommendations published by the
European Executive yesterday. Prime Minister Florin Cîţu stated that
the fiscal-budgetary strategy announced by the Government, with the
return of the budget deficit below 3% in 2024, had been accepted as the
main strategy by the European Commission.
Economic sentiment in Romania grew in May, for the sixth consecutive
month, by a monthly rate of 2.6 points, having reached 104.1 points,
compared to 101.5 points in April and 90.8 points in February,
according to the Economic Sentiment Indicators (ESI) calculated by the
European Commission. The value recorded last month is the highest one
since February 2020, and the successive advances indicate that local
managers expect economic activity to accelerate in Q2 of this year.
Industrial producer prices (domestic market and foreign market) grew by
7.9% in April 2021 compared to the similar period of the previous year,
according to data published by the National Institute of Statistics
(INS) yesterday. Moreover, industrial production prices were up 1.2% in
April, compared to March 2021.
Banks on the Romanian market granted approximately RON 3.5 billion new
RON-denominated corporate loans in April 2021, down by RON 1.1 billion
(24.1%) compared to the level recorded in March 2021. Corporate lending
slowed down after having reached the second monthly record high of the
past 14 years in March this year, of over RON 4.6 billion. The highest
monthly volume of RON-denominated corporate loans, of RON 4.7 billion,
had been recorded in December 2020.
National Bank of Romania’s foreign exchange reserves stood at EUR 37.57
billion on 31 May 2021, compared to EUR 38.304 billion on 30 April
2021. EUR 759 million worth of inflows representing changes in credit
institutions’ foreign currency-denominated required reserves, inflows
into the Ministry of Finance’s accounts, inflows into the European
Commission’s account and other were recorded during the month.
Banca Transilvania, the biggest bank in Romania, announced yesterday
that it was to acquire the entire stake held by Getin Holding Group at
Idea Bank and that the contract was to be signed sometime during the
day. The transaction includes the companies part of Idea Bank Group in
Romania, namely Idea Leasing IFN SA and Idea Broker de Asigurare SRL,
and its value amounts to about EUR 43 million.
The One Tower building in Floreasca area of Bucharest will have an
"office hospitality" center, the first such center on the Romanian
market. The One space, created by a group of investors not related to
One United, was developed following a EUR 4 million investment and will
become operational in autumn.
WEP Technology Investment is the latest project company to have
received a technical approval for connection to the power grid for a 48
MW wind farm in Pecineaga Commune, Constanţa County. The approval was
granted by the Italians from E-Distribuţie Dobrogea, a company that is
part of the Enel Romania group and which manages the power distribution
network in the south-east of Romania. The investment in this wind farm
would amount to about EUR 70 million.
Construction company Bog’Art announced yesterday that it had started
developing Art City, a luxury residential project in the north of
Bucharest, worth EUR 20 million. The real estate project includes 141
apartments, 500 square meters of commercial spaces and 180 parking
spaces, which will be delivered in October 2022.
Yesterday, senators rejected a project initiated by the MPs from the
Alliance for Romanians’ Unity (AUR), which aimed to repeal certain
provisions of Law 334/2006 on the financing of political parties’
activity and election campaigns, by eliminating subsidies granted to
political parties from the state budget, in order to use these amounts
"to cover social needs". The rejection report drawn up by the
specialized committee indicates that this funding functions at European
level as well and that relating to certain constitutional provisions is
The European Commission is set to borrow about EUR80 billion ($97.76
billion) this year in long-term bonds to finance the European Union’s
plan for economic revival after the pandemic, the EU executive said on.
The Commission said the borrowing, to begin later in June, would be
topped up with tens of billions of euros of short-term EU-Bills to
cover the remaining financing requirements, adding it would update its
funding plan in September.
The labor market is showing recovery signs, after a year during which
companies and working methods had to be reinvented to adapt to the new
pandemic context. Over 4,000 new candidates filled in resumes on the
BestJobs platform in May, looking for a job opportunity. Moreover,
companies have also been increasingly active and alert in the
recruitment process, the number of potential candidates contacted by
companies having been three times higher in May than in April.
The National Recovery and Resilience Plan (PNRR) provides for the
allocation of EUR 3.6 billion for Educated Romania. Targeted reforms
include the development of an inclusive and good quality early
education system and a reformed baccalaureate. The investments
stipulated in PNRR include 1,800 green minibuses for student transport,
75,000 classrooms equipped with furniture, 20,000 recreation and
reading places, 20,000 newly created accommodation places on university