News

Daily Newsletter - 7 June 2019

Summary

Macroeconomic News (2)

INS confirms economy expansion

The National Statistics Institute (INS) confirmed yesterday, June 6, that the national economy had grown 5% in the first quarter of this year, compared to the corresponding period of last year. The figure is better than expected, but still half a percentage point below the official forecast for 2019.

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PM Dancila receives IMF delegation

Prime Minister Viorica Dancila received the expert delegation from the International Monetary Fund (IMF) on Thursday. The PM stressed Romania's economic growth in the first quarter of this year and the fact that public debt is one of the lowest in the European Union. According to the Cabinet, public debt accounted for 38.7% of GDP at the end of March 2019, below the European average.

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Financial News (2)

Third CNSM meeting

The systemic risks identified in the national financial system and the trend of banking solvency in Romania were two of the topics discussed at the General Council of the National Committee for Macroprudential Oversight (CNSM), which was held for the third time this year. CNSM decided to advise the National Bank of Romania (BNR) to keep the countercyclical capital buffer at 0%. The buffer has been at 0% since January, 2016.

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Steven van Groningen: Is it worth it providing a stimulus during a time of economic growth?

Asked about his opinion on the A Home for Every Family program, a program that according to politicians' public statements should replace "Prima Casa", Steven van Groningen, the president of Raiffeisen Bank, said he had not looked at this program yet, but in comparison with the original program, the banker wonders whether any incentives are necessary in a growing economy.

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Investment News (2)

EC allocates EUR 110.5 million for water and sewerage in north-western Romania

The European Commission announced the allocation of EUR 110.5 million, through the Cohesion Fund, for the construction of drinking water and sewerage networks in north-western Romania, according to a press release issued on Thursday. The allocation was signed by Corina Cretu, the Commissioner for Regional Policy.

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Transavia invests in Alba Iulia children hospital

Transavia, the leading poultry producer in the country, will invest more than EUR 3 million in a hospital for disabled children. The hospital will be built in Alba Iulia, with the help of the Maria Beatrice NGO.

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Legislative News (2)

2040 Romania Strategy unconstitutional

The Constitutional Court of Romania issued a unanimous ruling declaring the 2040 Romania Strategy unconstitutional. The bill would have forced future cabinets to implement all the projects drafted by a commission controlled by the Chamber of Deputies.

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Tariceanu: We agreed we must analyze Decree 114

Calin Popescu Tariceanu, leader of ALDE, said the ruling coalition had agreed to review Decree 114 in order to see whether some other of its stipulations have a negative impact on the business community.

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Politics (2)

PM Dancila discussed cabinet situation with president

Prime Minister Viorica Dancila stated on Thursday that she had discussed the Cabinet reshuffling with President Klaus Iohannis, in order to present the reasons for her decisions.

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PNL-USR-PLUS alliance would break PSD's hold on county councils

The Cabinet's decree making the position of county council president subject to direct election by the people helps only a handful of Social Democratic barons in southern Romania, based on the European Parliament election results. The figures show that a PNL-USR-PLUS alliance would break the PSD's hold on county councils.

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