News

Daily Newsletter - 8 March 2023

Summary

Macroeconomic (1)
Financial (3)
Investment (2)
Legislative (3)
European News (1)
Social (2)
Macroeconomic 
Majority of Romanians believe that purchasing power decreased in 2022
A study on the smuggling and counterfeiting phenomena in Romania shows that three quarters of respondents believe that people will be tempted to buy cheaper products on the black market amid the rising prices, Agerpres reports. Moreover, the majority of Romanians believe that purchasing power dropped in 2022 and are pessimistic about the evolution of living standards in 2023. More than half of participants in the survey believe their level of living will be lower this year.
Financial 
Libra Internet Bank has included the "Libra mPOS" application into its portfolio
Libra Internet Bank has included the "Libra mPOS" application into its portfolio, which allows merchants to replace the traditional POSs with Android mobile devices. The solution represents a secure and flexible method of accepting payments by contactless bank cards and devices equipped with the NFC technology using alternative payment methods (phone, smartwatch). The app is available in Google Play, can be installed on one’s mobile phone or tablet, and can be accessed using the authentication data provided by Libra Internet Bank, based on a pre-signed contract.
Allianz-Tiriac ended 2022 with RON 2.9 billion gross written premiums
Allianz-Tiriac ended 2022 with RON 2.9 billion gross written premiums, up more than 40% compared to 2021, and RON 1.2 billion paid claims. Payments to and on behalf of clients grew faster than sales last year, by around 53%. Apart from the paid claims, Allianz-Tiriac had more than RON 3 billion in technical reserves at the end of December 2022, which is a guarantee for policyholders that future commitments will also be met, according to a press release.
Ministry of Finance raised RON 120 million from banks on Tuesday
On Tuesday, the Ministry of Finance raised RON 120 million from banks, in addition to the auctions on Monday, when it had borrowed RON 854.3 million at interest rates of 7.59% and 7.99% per year respectively through two benchmark government bond issues. The nominal value of the two additional issues was RON 75 million and RON 45 million respectively. Banks submitted offers worth RON 350 million and RON 155 million respectively.
Investment 
Bihor County Council has launched a European project worth more than RON 5 million
Bihor County Council has launched a European project worth more than RON 5 million (about EUR 1 million), VAT not included, within the National Recovery and Resilience Plan (PNRR), which involves equipping seven special education schools under its subordination. According to the project, the seven schools will be equipped with teaching materials, digital equipment and classroom furniture. Digital equipment will thus be supplied for four computer science laboratories and 66 classrooms, among other things.
German group Stada has started a EUR 50 million investment in Romania
German group Stada, present in Romania through its subsidiary Stada Romania, maintained its double-digit growth in 2022, having recorded EUR 3.8 billion sales (up by 11% year-on-year) and EUR 875 million EBITDA (up 17%). Stada has started a EUR 50 million investment in Romania in order to strengthen its supply chain resilience. Once it is finalized in 2024, it will consolidate a chain that includes 20 production units in Europe, Eurasia, Asia and a network of 16,700 local partners and suppliers.
Legislative 
112 NGOs call on President Klaus Iohannis not to limit their access to justice
112 non-governmental organizations in Romania have called on President Klaus Iohannis not to promulgate the law limiting associations’ access to justice, but to challenge it at the Constitutional Court of Romania. The law violates at least four articles of the Constitution, including free access to justice and freedom of expression and association, according to the signatory organizations, which include Declic Association, BankWatch Romania Association, Funky Citizens, Dăruiește Viață, Agent Green, and FDSC - Foundation for Civil Society Development.
Prime Minister Nicolae Ciucă spoke about the new education laws
The president of the National Liberal Party (PNL) and Prime Minister Nicolae Ciucă has stated that the new education laws allow Romanian students to carry out academic training abroad, but also open Romanian universities to foreign students. He has also indicated that the National Program for University Internationalization will be in charge of these academic exchanges, and will provide Romanian students with all the support and information they need to start a study period in another country.
Senator Florin Cîțu submitted a draft law to Parliament for the reduction of tax on dividends
Liberal (PNL) Senator Florin Cîțu has submitted a draft law to Parliament to reduce the tax on dividends from 8% to 5% and the threshold for paying health insurance contributions from 24 to 12 minimum wages for incomes from rents, news.ro notes. The Liberal has also indicated that all the effects of the harmful ordinance 16/2022 imposed by the Social Democratic Party (PSD) must be eliminated. Florin Cîțu has also stated that Romania was better managed under the Liberal governing.
European News 
At the beginning of last week, the passage of the EU’s law on CO2 emission standards for cars and vans seemed broadly on track
At the beginning of last week, the passage of the EU’s law on CO2 emission standards for cars and vans, which includes a de facto ban on the sale of combustion engine vehicles from 2035, seemed broadly on track. A meeting to ratify the legislative proposal scheduled for today (7 March) - seen as a mere formality - has been cancelled. No new date has been proposed yet.
Social 
More than 5,000 files were registered in National Program aimed at Increasing Birth Rate
Minister for Family, Youth and Equal Opportunities Gabriela Firea has announced that more than 5,000 files were registered in the National Program aimed at Increasing Birth Rate and about 2,850 files have been analyzed by the committee. She has also indicated that, so far, 1,000 contracts have been sent to couples or women enrolled in the program and nearly 600 vouchers have got to or are on their way to the beneficiaries. The Family Minister estimates another 400 contracts will get to applicants this week.
9.8 million women had their regular residence in Romania on 1 January 2022
According to the National Institute of Statistics, of the 19,042,500 persons who had their usual residence on Romania’s territory on 1 January 2022, 9,803,000 are women, representing 51.5% of the total resident population. In urban areas, the share of women is higher than in rural areas; more than 5,258,300 women live in cities, accounting for 52.8% of the total urban population, while in rural areas the share of women is 50%, the data show.