FIC is a permanent
partner of the Romanian Government in finding the most effective
solutions and measures to attract foreign direct investments.
Attracting new FDI and also stimulating the investments already present
in Romania, is a solution to stabilize and constantly increase the
economy. FIC welcomes the adoption and publication in the Official
Gazette of the normative act that establishes the Romanian Agency for
Investments and Foreign Trade under the Government and the coordination
of the Prime Minister. This represents a first step in aligning Romania
to the good European practices for attracting foreign investments by
creating a dedicated body for promoting investments (“one-stop shop”)
whose main objective is to encourage investments in Romania through
companies with foreign capital and to stimulate trade.
The Foreign Investors Council (FIC) published the results of the latest
edition of the Business Sentiment Index (BSI) held in September 2022.
The answers show that, despite the current challenges (inflation,
energy market crisis and utility prices, geopolitical context, supply
chain bottlenecks, available and adequate labour force), investors’
perception of the economic environment in Romania is moderately
optimistic. The business environment takes a more cautious approach to
new investments compared to last year’s edition when BSI revealed a
maximum appetite for investment (since 2014), results that have been
captured in the NBR report published at the end of September and which
highlight the level of 8.9 billion euros in foreign direct investments
in 2021, the second highest value of this indicator after the one in
2008.
Industrial producer prices (domestic and external market) grew by 46.7
% in September 2022 year-on-year, and decreased by 1% compared to
August 2022, according to data published by the National Institute of
Statistics on Wednesday, 2 November. Prices in the mining industry
increased by 79.28% in September compared to September 2021 and fell by
1.18% compared to August 2022. Crude oil and natural gas extraction
recorded the biggest price increases in this category, of 120.58%
year-on-year and prices were up 2.05% against August 2022.
The Romanian mergers and acquisitions market recorded 169 transactions
in the first nine months of the year, up by 18% year-on-year, but the
value of these deals fell to USD 4 billion, from USD 5.4 billion in
September 2021, EY Romania has announced. At a quarterly level, trading
activity picked up, with the volume having increased by 3.6% and the
value having gone up 5.3% compared to the similar period of 2021.
Fiscal Council president Daniel Dăianu has stated that the surprise of
high inflation is helping budget execution in Europe and other
countries around the world, as seen in Romania, where nominal public
budget revenues grew by nearly 20% in the first nine months of the
year, compared to September 2021, amid an annual inflation of 15.9% in
September. He has also indicated that 2022 is likely to mark a budget
deficit of around 6% of GDP if the impact of the capping and
compensation scheme is not overwhelming (the nine-month deficit was
3.04%). The inflation of 8.2% in 2021 and probably around 16% in 2022
has helped public debt not to exceed 50% of GDP, despite significant
budget deficits.
Allianz-Tiriac has launched a new campaign within which it offers a
free mandatory home insurance policy (PAD) upon contracting an optional
home insurance policy during the period 1 November - 31 December 2022,
according to the information transmitted by the insurer. The campaign
encourages responsible insurance behavior and targets homeowners (type
A) who are not yet insured with Allianz-Tiriac or Allianz-Tiriac
clients whose policy expired at least 30 days ago. The campaign covers
all optional home insurance products distributed by Allianz-Tiriac,
directly or through intermediaries.
BCR has increased interest rates on RON-denominated household term
deposits to 8%. The offer applies to both newly opened deposits and to
those that are extended manually or automatically upon maturity, amid
the rising inflation. The minimum amount needed for opening a
RON-denominated deposit is RON 500, while minimum RON 1 is necessary
for a savings account in RON. BCR has also increased the interest rate
on the Maxicont RON-denominated savings account, from 1.50% to 2%, and
has re-included into its offer euro- and USD-denominated term deposits
with three-, six- or twelve-month maturities, with a single interest
rate of 0.25%, regardless of the period, as well as the Maxicont
savings account in RON and USD with an interest rate of 0.10%.
Allianz-Tiriac and UniCredit have launched a life insurance policy with
an investment component, called Start Invest, with scheduled RON- or
euro-denominated premiums and a flexible maturity period. Premiums can
be monthly, quarterly, half-yearly and annually, and clients can choose
to keep investing after the contract reaches maturity for up to three
years. UniCredit clients who purchase this insurance can invest the
basic premium or additional investment premiums in three different risk
class programs - low, low to medium and medium - managed by
Allianz-Tiriac for investments in RON and by Amundi for investments in
euro.
INSIA, a network of insurance and consumer loan brokers that is part of
Marsh, is currently 80% owned by the Unilink Group, completing its
insurance distribution network in Central and Eastern Europe, after
having recently acquired the largest insurance broker in Romania,
Safety Broker, according to the information provided by company
representatives. By entering the Czech and Slovak markets with INSIA,
Unilink is consistently implementing its plan to build the largest
insurance sales platform in the CEE region.
Sanador Clinical Hospital, one of the largest private healthcare
operators, owned by the Andronescu family, has invested EUR 6 million
in a fully digitalized operating theatre, comprising two operating
rooms with latest generation equipment. One thousand heart surgeries
can be performed at Sanador annually following the opening of the new
operating theatre. The investment was made from the operator’s own
sources and from loans.
Monsson Group, the largest developer of green energy projects in
Romania, has signed an agreement with Rezolv Energy, a company owned by
the British investment fund Actis, for the construction of a 1,044 MW
solar park in Arad. The solar park, currently managed through the
project company West Power Investments, owned by businessman Emanuel
Muntmark, received technical approval for connection to the grid at the
end of March. The size of the project is unprecedented in Romania and
at European level.
On Wednesday, 2 November, the Government approved the construction of a
building for Artificial Intelligence Research laboratories at the
Technical University of Cluj Napoca. Government spokesman Dan Cărbunaru
has stated that the total value of the investment amounts to RON 126
million. The building will be built on the university’s campus, Mr.
Cărbunaru has added, pointing out that its area will exceed 2,000
square meters.
On Wednesday, 2 November, the Constitutional Court of Romania approved
the challenge filed by Save Romania Union (USR) party to the law
allowing the construction of small hydropower plants in protected
areas. CCR wrote in a press release that the law under criticism
violated the principle of bicameralism, as the version adopted by the
Senate fully covered the procedure and conditions under which the
boundaries of protected natural areas can be modified (who can request
the modification of boundaries, how and under what conditions), whereas
the version adopted by the Chamber of Deputies only tangentially
referred to this issue, while the substance of the regulation referred
to the conditions under which hydropower projects in progress with a
completion rate of more than 60% on 1 May 2022 would continue to be
carried out, by way of derogation from a number of regulations relating
to environmental protection.
During the meeting on Wednesday, 2 November, the Government approved a
decision amending Government Decree 263/2001 on the planning, approval,
maintenance and operation of recreational ski slopes and trails.
Minister of Entrepreneurship and Tourism, Constantin-Daniel Cadariu,
said the decision to update the legislation had been made following an
analysis. The normative act regulates the access of people with special
needs onto ski slopes, referring to their equipment, and updates the
level of fines.
On Wednesday, 2 November 2022, President Klaus Iohannis promulgated the
law giving Courts of Law jurisdiction to settle malpractice cases. The
normative act amends Law 95/2006 by unifying jurisprudence on the
jurisdiction to settle medical malpractice cases. The competence to
settle such disputes currently belongs to District Courts. The
procedure for determining malpractice cases does not prevent free
access to justice under common law.
On Wednesday, during a ceremony held at the Cotroceni Palace, President
Klaus Iohannis signed the decree for the promulgation of the law
approving the National Cancer Prevention and Control Plan. The ceremony
was attended by Prime Minister Nicolae Ciucă, by the initiators of the
law and by presidential advisers. According to the law, the plan will
be implemented for the period 2023-2030 and is the main public policy
document underpinning cancer prevention and control measures at
national level.
In recent years, energy companies operating large combined heat and
power plants were looking to switch from coal to gas as a stepping
stone towards decarbonisation. Now, soaring gas prices have put
question marks over how to lower emissions from these energy and
heat-producing installations. Across Europe, about 10% of heat is
supplied by district heating systems, which pump heat through
underground water pipes across neighborhoods or cities. Many of
Europe’s large legacy district heating systems have historically been
fed by combined heat and power (CHP) coal plants, particularly in
Eastern Europe, where sprawling pipe networks were built by Communist
governments decades ago. Today, 26% of Europe’s district heating is
still supplied by plants burning coal.
Minister for Family, Youth and Equal Opportunities Gabriela Firea has
announced the signing of credit conventions and the implementation of
the governmental programs "Student Invest" and "Family Start". Loans of
EUR 10,000 for students and EUR 15,000 for young families will be
granted with a state guarantee and subsidized interest. Under the
national program "Student Invest", young people in the higher education
system authorized by the Ministry of National Education can obtain
loans of up to RON 50,000.
More than 60% of Romanians rate themselves negatively in terms of
personal value to society and 8 out of 10 say they have felt
discriminated against at least once in their lifetime. Moreover, 86% of
respondents feel they have been unfairly refused a loan at least once
in their lives, including because of their social status. Furthermore,
57% of the working population are confident that they will have a
decent living after retirement. These are the findings of a
quantitative and qualitative research conducted by Novel Research and
Izibiz and commissioned by Provident Financial Romania.