Daily Newsletter - 6 September 2019


Macroeconomic News (2)

Romania has biggest VAT collection deficit in EU

In 2017, Romania lost EUR 6.4 billion in uncollected VAT revenue, the equivalent of 36% of the country's estimated VAT revenue, the highest figure in the European Union, according to a study published by the European Commission on Thursday. The second place went to Greece (34%), followed by Lithuania (25%).


RON to fall 1.6% in next 12 months

The RON will fall 1.6% against the European currency in the next 12 months, as Romania fights twin deficits, according to a Reuters survey. This could worsen the budget and current account deficits, according to ING Bank's Ciprian Dascalu.


Financial News (2)

Insurance market to grow 7.8%

The insurance companies authorized and regulated by the Financial Supervisory Authority (ASF) subscribed gross premiums worth almost RON 5.44 billion in the first half of the year, up 7.8% on an annual basis. The European financial markets did well in both 2018 and the first half of 2019, buoyed by growing economies, low unemployment rates, rising disposable incomes and steady consumer confidence.


Green Group secures first sustainable development loan in Romania

Green Group, the biggest integrated recycling park in Romania, has signed the first syndicated loan for sustainable development in the country. The syndicate is made of four local banks: ING Bank, UniCredit Bank, Intesa Sanpaolo Bank and OTP Bank Romania. ING Bank Romania was the coordinator and documentation agent.


Investment News (5)

eMAG opens fourth Apple Shop

eMAG, Romania's biggest online retailer, announced on Thursday the inauguration of the fourth Apple Shop, which is scheduled for Saturday, September 7. The new shop is the biggest so far, occupying 80 square meters at eMAG's Baneasa showroom.


KMG International considers Petromidia output expansion

KMG International is considering the doubling of production at the Petromidia Refinery. This is one of the projects being discussed by the Romanian-Kazakh investment fund, with a decision expected in the next 3-4 months. The refinery has the biggest yield for white products in the region and ranks ninth among the 250 refineries located in Europe and Africa.


Metro's LaDoiPasi franchise reached 1,000 stores

The LaDoiPasi store chain, developed by Metro Cash&Carry, reached 1,000 locations in September. The chain is planning to double in size over the next four years. This is the second chain of proximity stores to reach 1,000 units, after Profi Rom Food.


Romania accounted for almost a quarter of EU fund fraud cases between 2012-2018

The European Anti-Fraud Office (OLAF) opened 219 investigations last year, following the analysis of information collected in 1,259 cases, while completing 167 investigations and demanding the reimbursement of EUR 371 million to the EU budget.


Reynaers Aluminium announced EUR 1.4 million investment plan

Reynaers Aluminium Romania has an investment plan worth EUR 1.4 million for the next five years. The company will spend more than EUR 500,000 on relocating to its new headquarters, which includes a 200-sqm showroom. The company is a leading provider of aluminium solutions for the construction sector.


Legislative News (2)

MFP tries to facilitate SPV registration

The Ministry of Finance (MFP) is trying to facilitate the "registration" of Romanians living abroad into the Virtual Private Space (SPV), urging embassies to take over ANAF's job of identifying and allowing access to the SPV to all those who register.


Teodorovici: Tip taxing and "Prima Casa" overhaul to be passed in early October

The Minister of Finance, Eugen Teodorovici, stated on Thursday that he had submitted a series of bills that the Cabinet is expected to adopt, including bills regulating the taxation of tips and overhauling the "Prima Casa". The bills could come before the Parliament in early October.


Politics (2)

PM sends notification to CCR

Prime Minister Viorica Dancila announced on Thursday that she had notified the Constitutional Court about the president's refusal to appoint the interim ministers nominated by the Social Democrats (PSD).


President Iohannis rejects nominations

President Klaus Iohannis announced in a press conference his refusal to accept the interim minister nominations submitted by the Social Democratic Party (PSD). The president called the PSD's governing style as a petty political game and sent the PSD to the Parliament to have its nominations endorsed.


Social (1)

80.1% of Romanian deaths avoidable

In 2016, Romania ranked first in the European Union based on the number of avoidable deaths, taking into account medical knowledge and technology. Avoidable deaths accounted for 80.1% of the total, compared to an EU average of 68%.