News

Daily Newsletter - 3 October 2018

Summary

Macroeconomic News (2)

Romania supports pilot reverse VAT project

Romania supports the implementation of a pilot project for reverse VAT collection, which could help reduce tax evasion, while increasing the collection rate, according to statements made by Minister of Finance Eugen Teodorovici at the Tuesday meeting of ECOFIN.

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Industrial production prices up 5.9%

The industrial production prices, both domestic and foreign, went up 5.9% in August, compared to the corresponding month of 2017. The energy industry reported a massive 14.7% increase in prices, according to data released by the National Statistics Institute (INS) on Tuesday. The intermediary goods sector logged a 5.86% increase in prices, followed by durables with a 2.46% gain.

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Financial News (4)

Reference exchange rate close to new high

The National Bank of Romania (BNR) announced for October 2, 2018, reference exchange rates of RON 4.0507 for the US dollar and RON 4.6658 for the Euro. The EUR/RON exchange rate is close to an all-time high, while the US dollar jumped 1% in one trading session.

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Banking and insurance attracted EUR 960 million in foreign investment last year

The banking and insurance sector attracted EUR 960 million in foreign direct investment last year, a three-year high. The total value of foreign direct investment in banking and insurance reached EUR 9.4 billion at the end of 2017, 12.4% of all foreign direct investment.

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Liviu Voinea, BNR: Consumer protection should be BNR's job

Liviu Voinea, Deputy Governor of BNR, said that the job of protecting banking consumers should belong to the National Bank. "The law says consumer protection is not our job, but ANPC's. However, in my opinion, consumer protection is closely connected to financial stability and should belong to a financial supervisory authority, maybe even to BNR," said Voinea.

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Laurentiu Mitrache nominated for CEC Bank chairman position

Laurentiu Mitrache, former head of Leumi Bank, was nominated for the position of chairman of the Steering Committee at CEC Bank, according to Radu Gratian Ghetea. The board members have also put forward the name of Bogdan Neacsu, Vice-President in charge of risk at Patria Bank, for the position of vice-chairman. The nominations need to be approved by the National Bank of Romania (BNR).

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Investment News (2)

Romanian companies attracted EUR 496 million in 2017

Romania was the second most important target for private equity investment in Central and Eastern Europe last year. However, the aggregated value of capital invested in Romanian companies was five times lower compared to Poland, the regional leader. Romanian companies received a total of EUR 496 million, 14% of the EUR 3.5 billion attracted by the region.

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Minister of Agriculture: We're bringing back an irrigation system

The Jilava water pumping station, belonging to the Berceni-Vidra-Frumusani irrigation system, was started on Tuesday, after a pause of 12 years. The station was brought back with the help of RON 1.3 million invested by the National Real Estate Improvement Agency (ANIF). The water will be distributed to almost 10,000 hectares of farmland located in the Ilfov, Giurgiu and Calarasi counties.

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Legislative News (1)

Offshore bill roils Chamber waters

The joint session of the Chamber's Industry, Budget and Administration Commissions ended up in a row over the offshore bill. The Social Democrats brought new amendments to the bill, most likely at the order of party leader Liviu Dragnea. The amendments would change the meaning of the bill completely.

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Politics (2)

Viorica Dancila and Tudorel Toader to travel to Strasbourg

Prime Minister Viorica Dancila and Minister of Justice Tudorel Toader will travel together to Strasbourg to meet with Frans Timmermans, First Vice-President of the European Commission. Timmermans was very critical of the judiciary regulations changes made by the PSD-ALDE coalition and warned the Cabinet that he would not hesitate to sue the Romanian state.

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Orban: The only solution for the Government is to observe the MCV recommendations

The only solution for the Government is to observe the recommendations made by the MCV and the Venice Commission, according to PNL leader Ludovic Orban. Orban added that a resolution against Romania would jeopardize the country's position within the European Union.

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Social (1)

Penitentiary unions announce protests

The Labor Federation of the National Penitentiary Administration (FSANP) announced that more than 300 members will protest in front of the Ministry of Justice on Wednesday. The employees are angry with what they see as Minister Toader's "indolence and incompetence" and demand better working conditions, overtime and the elimination of payroll discrimination.

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