Economic expansion has almost come to a halt in the euro area,
according to Fabio Panetta, a member of the European Central Bank
(ECB)’s Executive Board. He has warned that it would be imprudent for
the Frankfurt-based institution to increase the key rate without having
first seen the GDP data for the second quarter. Mr. Panetta’s comments
strike a far more cautious approach than those from some of his
colleagues in the ECB Board, who have raised the possibility of a
benchmark interest rate increase starting from July to combat the
soaring prices.
Coface has revised upwards its estimate regarding the cost of the war
in Ukraine for global economy to about 1% in 2022. The consequences of
the conflict will be felt especially starting from the second half of
the year and will continue to be felt even after 2023, the consultancy
firm indicates. More than two months after the start of the war in
Ukraine, on 24 February, the prospects for a quick resolution of the
war look increasingly unlikely. As sanctions against Russia continue to
pile up, a return to the pre-war situation seems illusory, even if the
conflict ends early.
The rising inflation has undermined confidence in Western economies,
and central banks are acting timidly for fear of suppressing economic
growth and are waiting to see whether inflation is transitory,
according to eToro analyst Bogdan Maioreanu. 69% of Romanian investors
distrust local economy, but they are 5% fewer than at the end of last
year. Although they do not trust the economy, individual investors in
Romania see no problems related to revenues and level of living, as
two-thirds of them are confident about the stability of their income,
down by 8% against December 2021. Moreover, the eToro Retail Investor
Beat data also show that 73% trust their investments. It is worth
mentioning that 61% of Romanian investors have children and 4% are
expecting a child.
Banca Comercială Română continues to extend the services provided on
"George pentru afaceri" (George for Enterprises) platform to
non-banking products and announces a partnership with Edenred, a
supplier of prepaid service vouchers offering companies direct access
to fringe benefits for employees. Starting this month, entrepreneurs
using "George pentru afaceri" platform can access the products offered
by Edenred (Restaurant Ticket Card, Gift Card, Culture Card and Holiday
Card) from the online store.
The market of mandatory civil liability car (RCA) insurance policies
continues the consolidation that had stated in the latter part of last
year. February 2022 marked the continuation of the diversification
process, an essential element in increasing competition and ultimately
market stability. Data reported by insurance companies and aggregated
by the Financial Supervisory Authority (ASF) show that gross
underwritten premiums reached RON 2.47 billion in the first three
months of 2022. Euroins’s market share was under 35% in February, down
from nearly 38% in January, while the players filling the next places
in the ranking increased their shares. As a result, Allianz Țiriac
exceeded 20.3% in February, up from 18.7% in January, and Groupama
reached an over 19.3% level in February, up from less than 14.5% in
January. Asirom VIG, Grawe and Omniasig VIG continued to have
considerable market shares, of about 8% in February.
Nearly 68% of internet users in Romania use Mobile Banking and Internet
Banking services, according to a survey conducted by CEC Bank in
partnership with FinZoom.ro platform. The cited data indicate that two
thirds of the 67.8% of users who prefer online services use digital
banking services on a weekly basis or even more often, and the
remaining one third are occasional users.
BRD group recorded RON 810 million total revenues in Q1 of 2022, up by
7.5% year-on-year, and a RON 263 million net profit, 18% above the
level reported for the same period of 2021, according to the financial
report published on Thursday. Net interest income grew by 9.8% y/y, to
RON 556 million, as a result of the higher loan volumes, while the
positive effect of the rising interest rates has started to gradually
reflect itself in revenues.
Logistics company DP World has invested EUR 15 million in a new
intermodal terminal in Aiud, close to Alba Iulia. The terminal and the
hub around it will be developed near Aiud. The intermodal terminal will
connect the city of Aiud to the rest of the world via the most
important freight transport hub in the region - the Port of Constanţa.
It will operate direct high-speed trains on Aiud - Constanţa route via
a direct railway line.
Cottontex, a sportswear manufacturer owning six factories in Romania,
is investing over EUR 500,000 in a renewable energy system to cover 32%
of its consumption. The project is being implemented by Restart Energy.
1,556 photovoltaic panels will be installed through this project,
covering 5,000 square meters, on the roofs of factories in Timişoara
and Lugoj. The photovoltaic generator will produce 20,250 MWh over the
next 25 years, which means a EUR 4 million reduction in electricity
costs.
Yesterday, in the presence of Prefect Irina Muntean, of Agriculture
Ministry representatives, of senators, deputies, of the Dutch Embassy
representatives, of APRIL president, and of NRCC, FrieslandCampina
Romania officially launched a new production line at its plant in Cluj,
for the Napolact cheese, according to a press release issued by the
company. The investment amounted to about EUR 3 million and is part of
Cluj plant’s expansion plan within the FrieslandCampina Cheese Centre
of Excellence in Romania. From now on, the company will produce
Napolact cheese slices and blocks in Cluj, both in conventional and
organic versions, thus offering a complete range of cheese products.
The new products will be available on all channels - modern trade,
traditional trade, online trade platforms and HORECA.
The economic activities carried out by individuals as PFAs, without
employment contracts, shall be deemed as accumulated service and, where
appropriate, as accumulated service in a certain specialization,
provided average monthly incomes reach the level of the gross minimum
wage for one year, according to a draft law promulgated by President
Iohannis. The draft law had been adopted by Parliament, through the
final vote of the Chamber of Deputies, a month ago.
On Thursday, President Klaus Iohannis promulgated the law ratifying the
Agreement between the Governments of Romania and of the Republic of
Moldova regarding the implementation of the technical and financial
assistance program based on EUR 100 million non-reimbursable financial
aid granted by Romania to Moldova, signed in Chişinău, on 11 February
2022. The Agreement is the main instrument through which Romania will
support Moldovan authorities’ efforts to achieve sustainable
development, to continue implementing reforms and to join the European
Union.
Romania supports the European Commission’s decision to phase out oil
and petroleum products imports from Russia, Energy Minister Virgil
Popescu has said. Romania will not be caught by surprise by the
elimination of Russian oil, which accounts for roughly 30% of the
country’s consumption, Popescu added. Romania’s largest energy company
OMV Petrom has already said that it has relinquished imports of Russian
oil, and Popescu said the refineries would find oil from other sources
such as Kazakhstan, Azerbaijan and Saudi Arabia. Kazakhstan, for
example, already covers about 40% of Romania’s market.
A Flash Eurobarometer survey conducted in all European Union member
states shows large support among EU citizens for the EU’s response to
Russia’s invasion of Ukraine, according to a press release of the
European Commission Representation in Bucharest. Most Romanians thus
believe that since the war started, the community bloc has shown
solidarity (78%) and has been united (70%) and fast (64%) in its
reaction. Moreover, 63% of Romanian respondents are satisfied with the
way the European Union has reacted to the war in Ukraine (the European
average is 52%) and 82% of them are satisfied with Romanian citizens’
reaction since the war started (above the 69% European average).
Students in Romania accumulated 4-6 month learning delays in the first
two years after the onset of the Covid-19 pandemic, more than the
average for Europe and Central Asia, according to international
consultancy firm McKinsey’s latest evaluation of the impact of the
pandemic on education at global level. Romania thus records bigger
delays than Western European countries and even than the Republic of
Moldova, but similar to several Central and Eastern European countries,
such as Ukraine or Poland, or several African countries.
A new session of the "Rabla" and "Rabla Plus" car scrapping programs
will start on 13 May. For the first time, they will target public
institutions and administrative-territorial units as well, according to
the president of the Environmental Fund Administration (AFM),
Laurențiu-Adrian Neculaescu. He has added that another session of the
"Rabla" program will be organized "sometime in September, again with
quite substantial amounts".
Vulnerable people will receive RON 250 every two months, a support
measure included in the Government’s plan of measures. Social vouchers
in electronic format will be granted, which can be used to purchase
food and warm meals. The project has been created by the government and
is supported through European funds. The vouchers are not considered
taxable income; therefore no state social security or health insurance
contributions are due for them.