News

Daily Newsletter - 5 February 2019

Summary

Macroeconomic News (2)

Ruling coalition postpones budget adoption

The government will adopt the state budget on Friday because some changes are still being discussed. The draft budget should have been adopted on Tuesday. Representatives of local authorities and, in recent days, UDMR leaders have come out against the budget. The implementation of Decree 114 is also causing problems, especially the tax on financial assets.

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Industrial prices down 0.2%

Industrial production prices (domestic and foreign markets) decreased by 0.2% in December, 2018, compared to the previous month, but increased by 4.5% over the same month of the previous year, according to data released by the National Statistics Institute (INS).

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Financial News (4)

Banking stocks rally after meeting

The two liquid banking stocks listed in Bucharest gained between 6% and 9% as investors expect the authorities to reach an agreement regarding the bank asset tax. However, the exchange rate is still under a lot of stress.

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BNR spokesman criticizes PM adviser

BNR spokesman Dan Suciu said that Valcov's statement regarding the modification of the ROBOR rate calculation method "is extremely confusing and denotes a lack of understanding of the interbank market".

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Cabinet to ask BNR to change ROBOR calculation method

The Cabinet will ask the National Bank (BNR) to change the formula used to calculate the ROBOR rate, in order to avoid taxing banks, according to statements made by Darius Valcov, adviser to Prime Minister Viorica Dancila.

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MFP vs. BNR

The much-anticipated results of Monday's meeting of the National Committee for Macroprudential Oversight (CNSM) regarding the bank asset tax were postponed by two weeks, according to a CNSM press release. What is expected from the Minister of Finance, Eugen Orlando Teodorovici, and BNR Governor Mugur Isarescu is to resolve the disputes between the two institutions regarding BNR's monetary policy in the last period and, more specifically, to replace the ROBOR peg of the bank asset tax.

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Investment News (1)

EUR 11 million for Resita County Hospital

The Resita County Hospital will benefit from EUR 11 million in funds from the European Union for three projects. The contract for the latest project, worth approximately EUR 3.5 million, was signed on Monday and it focuses on building energy efficiency and renewable energy installations.

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Politics (2)

Mayor Firea taunts, challenges Liviu Dragnea

Mayor Gabriela Firea has sent a new message to PSD leader Liviu Dragnea, telling him to be a man and debate her on any live television. "Liviu Dragnea, you and me, live on any television station you want. Let's put the numbers on the table, they are not lying. Be a man, don't run!", Firea posted on Facebook.

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PM Dancila accused EU governments of double standards in Politico interview

Romanian Prime Minister Viorica Dăncilă accused Western European leaders of double standards in criticizing her country over corruption and a crackdown on anti-government protests. Dăncilă, whose government holds the EU's rotating presidency, said corruption is also a problem in Western Europe and noted there had been no outcry among EU leaders when French riot police clashed with protesters from the Yellow Jackets movement.

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Social (1)

Gross minimum salary

Romania ranks third from the bottom among EU states based on the minimum gross salary with EUR 446, according to data published by Eurostat. Below Romania are only Bulgaria (EUR 286) and Latvia (EUR 430), while above are the former colleagues of the socialist bloc: Hungary (EUR 464), Croatia (EUR 506), Czech Republic (EUR 519), Slovakia (EUR 520), Poland (EUR 523), Estonia (EUR 540) and Lithuania (EUR 555).

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