News

Daily Newsletter - 4 November 2020

Summary

FIC (1)

Business community urges Parliament to reject Social Dialog Law amendment

The Coalition for Romania's Development (CDR) has warned about "the worrying trend of the process to amend the Social Dialog Law" and urged the Parliament to reject the current bill.

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Macroeconomic News (3)

85% of retailers reported traffic losses

Retail was probably one of the worst affected sectors of the real estate market, because of the lockdown period, but consumption has already exceeded the pre-crisis peak, albeit in a different structure. All retail players that also run online stores expect brick-and-mortar locations to generate a higher percentage of turnover in 2020 compared to 2019, with a quarter of respondents estimating growth rates of more than 50%, according to a survey conducted by the Retail Division of Colliers International.

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Industrial production prices down

The industrial production prices dropped 0.1% in September, compared to August, according to data released by the National Statistics Institute (INS). The annualized trend was a 0.9% drop.

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New car sales up 14%

12,523 new cars were registered in Romania in October, up 17.6% compared to the corresponding month of 2019. However, the total number of registrations for the first ten months of this year is down 27.9% compared to the corresponding period of last year, according to ACAROM and DRPCIV data.

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Financial News (4)

BCR launches first financial mindfulness program

BCR has launched Romania's first financial mindfulness program, designed with the help of therapist Gaspar Gyorgy. The 21-step program will help those who complete it to become more balanced and aware in their financial behavior.

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Ionut Dumitru, Raiffeisen Bank: 2021 will be a hard year for Romania, with a deficit of 7-8% of GDP

"The main hypothesis underlying the 2021 budget starts from the political decision to increase pensions: a 14% increase, which is already decided, will push the deficit to 7-8% of GDP, given an economic growth rate of 4.2%. If pensions increase by 40%, then the deficit will reach 11% of GDP. Romania's major problem is that the fiscal deficit is only partly caused by the pandemic," said Ionut Dumitru, chief-economist at Raiffeisen Bank.

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Number of banking cards reached 18 million nationwide

"Our card payment industry has a very good penetration rate in Romania. There are over 18 million cards in the country. Based on the active population, which is over 19 million inhabitants, not including children, who are some 4 million, there is at least one card for every active resident," said Catalin Cretu, Visa CEO for Romania, Croatia, Malta and Slovenia.

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26% of Romanians make no online payments for fear of data theft

More than a quarter of Romanians (26%) claim that the main barrier to making online payments or using online/mobile banking services is the fear of personal data theft, according to a study published on Tuesday. According to Reveal Marketing Research, cash offers a sense of control due to the direct contact with money (11%), which is why Romanians prefer to make cash payments rather than online or mobile payments.

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Legislative News (1)

Chamber of Deputies amends mining royalty

The Chamber of Deputies passed a PNL bill that hands 80% of mining royalties to the local authorities on whose territories are located the resource exploitation facilities. The funds would be split between the state (20%), county (55%) and local (25%) budgets.

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Politics (2)

President blames PSD for COVID death rate

President Klaus Iohannis stated yesterday that the high number of deaths from coronavirus, which is not seen as commensurate with the number of cases, is the result of more than 20 years of bad healthcare policies implemented by the Social Democrats (PSD).

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Ludovic Orban to meet Binyamin Netanyahu

Prime Minister Ludovic Orban is on an official visit to the state of Israel and Palestine on Tuesday and Wednesday, where he will hold official talks with his counterparts: Binyamin Netanyahu and Mohammad Shtayyeh. Orban and Netanyahu are expected to sign a protocol amending the tax evasion and double taxation convention between Romania and Israel.

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Social (2)

Two thirds of teachers need online training

Approximately 66.2% of teachers say they need training courses in order to be able to teach online, while 45.7% say they received no help whatsoever from the local authorities, according to a poll by the Spiru Haret Education Unions Federation.

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Parliament amends adoption regulations

The Chamber of Deputies adopted on Tuesday the bill amending and supplementing the adoption procedure regulations. The procedure for evaluating the adopters and the post-adoption monitoring phase were made more flexible, while some other procedures were streamlined.

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