News

Daily Newsletter - 9 January 2019

Summary

Macroeconomic News (3)

Cohesion policy funding for Romania could increase by 8%

Romania has EUR 30 billion allocated under the European Commission's proposal for the cohesion policy for the period 2021-2027, 8% more compared to the 2014-2020 period, according to the European Commissioner for Regional Policy, Corina Cretu.

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Instead of 2019 budget, Cabinet drafts 2018 achievements report

The budget for 2019 will have to wait. Although there should have been no problems in drafting the budget, as Romania has had two years of economic growth coupled with a significant reduction in public investment, a new delay is being prepared. Political sources say that the draft budget could be presented around January 15, and reach Parliament's floor in February.

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Vegetable and livestock farming subsidies budget is EUR 268 million

The budget allocated for vegetable and livestock farming subsidies for the application year 2018 is EUR 268.64 million, according to a draft order published on the Ministry of Agriculture's website.

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Financial News (4)

Aurelian Dochia: "We could be left without a finance-banking sector"

The row that started last year between the Ministry of Finance (MFP) and the banks seems to be growing, with Minister Eugen Teodorovici inviting Governor of the National Bank of Romania (BNR) to the MFP headquarters to answer some questions. Previously, the First Deputy Governor of the BNR had sent a letter to the Ministry of Finance warning that, in a negative scenario such as the "greed tax", lenders will see their profits vanish.

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BNR keeps key rate at 2.5%

The Board of Directors of the National Bank of Romania decided yesterday to keep the monetary policy interest rate at 2.50% and to maintain the interest rate for the deposit facility at 1.50% and at 3.50% interest rate on the credit facility (Lombard).

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Isarescu warned of decree effects

Governor Mugur Isarescu said it would be "absolutely normal" for banks to take their assets and leave the country, given that their assets would be taxed at a rate that would bring losses to shareholders or even depositors. At the same time, the banks would no longer buy Romanian government securities, because those would also be taxed.

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Isarescu: The banks must explain their business

The banks should be more active in the media and explain how banks work, as well as the meaning of provisions and profits, said Governor Mugur Isarescu of the National Bank of Romania at a press conference held on Tuesday.

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Investment News (1)

Bihor county's biggest industrial park to get kindergarten, creche

The Oradea I industrial park, the largest in Bihor County, managed by the Oradea Local Development Agency (ADL), a public company owned by the Oradea City Hall, will benefit from an EU investment of over RON 5 million. The funds will be spent on setting up a kindergarten and a creche with a total area of 4,166 square meters.

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Legislative News (1)

Tax Code updated with exemption for construction workers

The Tax Code was updated on Tuesday with the amendments featured in Government Decree (EGO) no. 114/2018, which introduced several legislative changes, according to the website of the National Agency for Fiscal Administration (ANAF).

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Politics (2)

EC comes to Bucharest

European Commission President Jean-Claude Juncker and the College of Commissioners will be in Bucharest on Thursday and Friday to mark the official start of the Romanian presidency. Jean Claude Junker will have joint meetings and statements with President Klaus Iohannis and Prime Minister Viorica Dăncilă, followed by meetings with the leaders of Parliament: Călin Popescu Tăriceanu and Liviu Dragnea.

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Dan Barna: USR will put forward its own presidential candidate

"The main goal for the Save Romania Union (USR) is the European Parliament election, and we expect a very good result. After the European Parliament elections, we will select the USR candidate for the presidential elections, USR will have its own candidate in the presidential election and we will take the decision after the EP election," said party leader Dan Barna at a press conference.

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