News

Daily Newsletter - 7 September 2020

Summary

Macroeconomic News (4)

BCR revises economy growth forecast

BCR has revised upwards by 1.2-1.4 pp the national economy's growth forecast for 2022-2024 in order to include the expected beneficial effects of the European recovery plan. EU funds will account for an average of 2.4% of the GDP per year for the next 10 years. Romania stands to receive up to EUR 63 billion in grants between 2021 and 2027.

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Only 13% of deficit increase comes from falling revenues

The state consolidated budget ended the first seven months of 2020 with a RON 32 billion increase in deficit compared to the corresponding period of 2019, according to the Ministry of Finance. 87% of the ADDITIONAL deficit came from spending.

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Orban: I would rather have the next Parliament vote on 2021 budget

Prime Minister Ludovic Orban wants the draft 2021 budget to be debated and voted on by the Parliament resulting from the election of December 6. According to Orban, the budget can be pushed through between Christmas and December 31, in order to have a 2021 budget on the very first day of the year.

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PM says minimum salary could go up next year

Prime Minister Ludovic Orban said he would not freeze the minimum salary next year and that the current value may increase, depending on productivity, inflation and the state of the economy. The PM added that an artificial increase in the minimum salary could lead to layoffs as some companies may relocate to countries with cheaper labor.

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Financial News (4)

BVB gained more than RON 210 million in capitalization

The Bucharest Stock Exchange (BVB) gained RON 210.49 million in capitalization last week. Stock trades generated a RON 243.46 million turnover, up from RON 190.97 million between August 24 and 28. Tuesday's trading session was the highest of the week, amounting to RON 243.46 million.

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Renault group to undergo reorganization

French automaker Renault announced a reorganization plan based around its brands, instead of geographical areas. Operations will be organized around four business units: Renault, Dacia, Alpine and New Mobility. The purpose of this project is to create a simpler, more business oriented organization that would improve the teams' cohesion, motivation and the sense of belonging.

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Romania exported around 1,500 MW of electricity on Saturday

Romania exported around 1,500 MW of electricity on Saturday, as wind power generation surged to 32% of the national total, according to Transelectrica. The second place went to nuclear power (17%), followed by hydro power plants (16.9%), coal-fired plants (13%), and solar parks (9).

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Mirela Calugareanu is CEC Bank's new board chairwoman

CEC Bank's general shareholder meeting approved on Friday the appointment of Mirela Calugaru as chairwoman of the board, according to a press release. The board has seven executive and non-executive members, appointed by the shareholders.

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Investment News (1)

Teraplast to invest EUR 20 million in production development

The TeraPlast Group is preparing to invest more than EUR 20 million. To achieve this, TeraPlast intends to file for state aid under the program designed to stimulate investments with a major impact on the economy. The company will cover 52% of the cost of these projects.

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Politics (1)

Election campaign to begin on November 6

The Permanent Electoral Authority (AEP) announced that the campaign for the Senate and Chamber election of December 6 will begin on September 7. The Central Electoral Bureau (BEC) for the parliamentary election will be established on September 11. Candidates must file their paperwork by October 22.

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Social (1)

55% of employees with children want hybrid or online schooling

More than 45% of the employees with children want school to be held as usual, despite the current epidemiological context, while 55% prefer hybrid or online schooling, according to a survey by recruiting platform BestJobs.

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