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Daily Newsletter - 5 March 2021

Summary

FIC Daily Newsletter | 05.03.2021
FIC (1) || Macroeconomic (2) || Financial (1) || Investment (4) || Legislative (1) || European News (1) || Social (1)
FIC: Investments, the trigger that can restart the economy

The Foreign Investors Council (FIC) welcomes the adoption of the budget by the Parliament and considers that it reflects a balanced and favourable vision for Romania's economic recovery. FIC consider that the central elements of the construction of the current budget are well outlined by the realistic estimation of future revenues and the framing of the general consolidated budget deficit (of 7.16%) within the acceptable limits at EU level. FIC believes that foreign direct investment can make a significant contribution to the economic recovery and therefore we reiterate the need to outline legislative measures and institutional structures dedicated to attracting foreign investment, considering this a priority for the next period. From this point of view, the FIC remains an active partner of dialogue that can support the authorities in such endeavours.

The budget deficit of 7.16 percent is within acceptable limits, says the Council of Foreign Investors ...

FIC - Investments, the trigger that can restart the economy

Retail trade sales decreased in January
Retail trade sales (a barometer for private consumption, the main component of the GDP) fell by 3.2% month-on-month in January, an evolution generated by the decline in sales of food/beverages/tobacco with a 2.1% monthly dynamics, according to data transmitted by the National Institute of Statistics (INS) yesterday. Sales of non-food products recorded a 1.1% monthly growth rate in the first month of 2021, and fuel sales were up 2.8% month-on-month in January.
The Consumer Price Index grew in January
The Consumer Price Index (CPI) grew in the first month of this year. After inflation had dropped to 2.04% for the overall year 2020, a 1.33% increase was recorded in January alone. Apart from the circumstantial rise in fuel prices, nearly two thirds of the general increase in prices in January 2021 came from the 18.38% increment in electricity tariffs.
Ranking of counties in terms of increase in retail and corporate loans balance
The ranking of counties according to the advance of the RON and foreign currency-denominated retail and corporate loan balance shows a change of perspective. Ialomiţa County, one of the least credited counties at the end of 2020, led the top in terms of last year’s lending speed, with a 23.2% increase in the balance of loans. As to the top of counties with the biggest loan balances at the end of 2020, Bucharest-Ilfov is the clear leader, followed by Cluj and Timiş, the first three counties accounting for half of the total balance of loans.
Works on a mixed real estate project in Braşov are soon to start
Nordis Group, a real estate developer which specializes in the construction of luxury real estate, has announced EUR 31 million investments in a mixed project of 14,000 square meters in Braşov to include a five-star hotel and residential apartments. The company has already obtained the building permit and will soon start works on the project, which, according to Nordis Group representatives, will be finalized in two years’ time.
Government promises investments in the consolidation of seismic risk buildings
The Government plans to invest RON 1 billion in the consolidation of seismic risk buildings in the country within the next four years, Minister of Development, Public Works and Administration, Cseke Attila announced yesterday. He participated in the debate "Why do we forget? What have we done about deteriorated buildings?", held 44 years after the 1977 earthquake, where he spoke about the need for a new national program for the consolidation of buildings with seismic risk, a project in this direction having been put up for public debate.
CNAIR announced the winner of the contract for the construction of section 4 of Sibiu – Piteşti Highway
According to Pro Infrastructură Association, the National Company for Road Infrastructure Administration (CNAIR) has announced the winner of the contract for the construction of section 4 of Sibiu – Piteşti Highway, the 10 kilometer lot between Tigveni and Curtea de Argeş, namely the Austrian company Porr. The specialists estimate that, unless no challenges are submitted, the RON 2 billion contract could be signed in March.
European Commission approved an investment for Romania
Yesterday, the European Commission approved an over EUR 77 million investment from the Cohesion Fund to improve the waste collection, treatment and recycling system in Galaţi County, in the south-east of Romania. The investment will provide a more integrated, efficient and sustainable waste management service, improving the quality of the environment for the benefit of over 500,000 inhabitants.
Electronic identity cards with an integrated chip could become available in Romania in August
President Klaus Iohannis has promulgated the law allowing people to opt for an identity card with an integrated chip. Minister of Research, Innovation and Digitalization, Ciprian Teleman stated on Tuesday that the electronic identity card would probably become available in August and would offer the possibility of electronic signature.
EU unemployment reinsurance scheme is being debated
An EU reinsurance scheme to support national unemployment benefits was not part of the European Pillar of Social Rights Action Plan presented on Thursday (4 March), although the European Commission has been supportive of the idea. The Commission’s executive vice-president for economy, Valdis Dombrovskis, said on Thursday that the goal should now be “gradually moving away” from income support measures, including SURE, to actions targeting active labour market policies.