Daily Newsletter - 9 October 2017


Macroeconomic News (4)

PwC: Romania continues to record the highest VAT collection deficit in the European Union (Source:; Date: 2017-10-08; Author: Unspecified)

Romania remains the member state that records the highest VAT collection deficit, of 37.2%, according to the data of the European Commission, which means an uncollected sum of approximately 7.7bn euros, an amount higher than Romania's budget allotments in 2017 for education, investments in infrastructure or health, the consulting company PwC Romania announced Friday.


EFE: Consumption, the single engine supporting the Romanian economic "miracle" (Source:; Date: 2017-10-08; Author: Unspecified)

Romania succeeded to stimulate the internal consumption and economic growth, which reached 5.6% in the first quarter of this year, the highest rate in the European Union, by wage rises and tax reduction, EFE agency recounts, cited by Agerpres. However, this apparent "miracle", in one of the poorest countries of the 28 EU member states, aroused skepticism among the experts, most of them considering it unsustainable, EFE informs.


Arithmetic beats politics: The budget remuneration system is based only on the transfer of contributions from the employer to employee. The Government threatens the trade unions by demission (Source:; Date: 2017-10-08; Author: Unspecified)

The negotiations between the government and trade unions on the transfer of all the social contributions to the employee failed Friday. The government warned the trade unions that if this measure is renounced, Mihai Tudose Cabinet steps down, as it can no longer apply PSD-ALDE governing program, approved by the Parliament and published in Monitorul Oficial. Without this transfer of contributions, the whole construction of the remuneration system from the public sector fails, as the budget can no longer bear the RON 63bn impact by 2022, as the enforcement of Law 153/2017 on remuneration would mean.


ANALYSIS Petrol and diesel oil prices rose last week, after the increase in excise (Source:; Date: 2017-10-08; Author: Unspecified)

Petrol and diesel oil prices continued to rise last week, after the completion of the last excise increase stage. At present, both petrol and diesel oil cost more than RON 5 per liter. Last Sunday, the fuel trading companies surprised the market by raising the two types of fuel by only RON 0.05 per liter, despite the fact that the excise increase was RON 0.16 per liter (RON 0.19 after VAT application).


Financial News (4)

Raiffeisen Bank has halved the balance and the number of loans in Swiss francs, after the process of conversion into lei (Source:; Date: 2017-10-08; Author: Unspecified)

Raiffeisen Bank halved the balance and the number of loans in Swiss francs, after the process of conversion into lei, and still has about 5220 loans in Swiss francs, with an overall balance of 185m euros (equivalent), compared to 11,600 loans in Swiss francs with an overall balance of 450m euros (equivalent) in late 2008, Mircea Busuioceanu, member of Raiffeisen Bank board of directors, risk vice president of the bank, stated Sunday in a press conference.


Ionut Dumitru, Raiffeisen Bank: Inflation will reach 4% and Robor - over 2% in the middle of next year (Source:; Date: 2017-10-08; Author: Unspecified)

Inflation rate will increase fast up to 4% in the middle of next year, pushed by the excise growths and by the administered prices, which will also push the interbank interests (Robor) to "two and a little", Ionut Dumitru, the chief-economist of Raiffeisen Bank, says. The recent increase in interbank installments is caused both by circumstantial factors, such as state's influence over the liquidity from the system, and by fundamental factors, such as price growth, Ionut Dumitru explains.


How much bank installments rise after the increase in Robor index, in October compared to September. See the count (Source:; Date: 2017-10-08; Author: Unspecified)

The increase in Robor indicator adds RON 6 to the installments of a loan in the national currency for personal needs worth RON 10,000, and RON 7 to the installments of a mortgage loan worth RON 250,000, in October compared to September, MEDIAFAX counts show. 3-month Robor indicator is added to the commercial interest in loans in lei for personal needs (consumer). The average commercial interest is 9% at present, while 3-month Robor rose from 0.8% in September to 1.8% in October. Thus, 0.8% was added to the amount of commercial interest in September, while 1.8% is added now.


BOGDAN CHIRIŢOIU: The Competition Council takes an investigation among banks into account, if it discovers irregularities in ROBOR's growth (Source:; Date: 2017-10-08; Author: Unspecified)

The Competition Council takes the triggering of an investigation among banks into account, if it discovers hints regarding the recent ROBOR growth, the head of the institution, Bogdan Chiritoiu, has stated for He said: "Interests were very low for a long period of time. If we have hints regarding agreements between banks, we take a possible investigation into account". Also the competition authority conducts an investigation in the banking system already, whereby it wants to see why there are higher commissions in Romania than in other countries, investigation that will be completed in June 2018.


Investment News (1)

A real estate project worth 1.7bn euros is to be built in the north of the capital. It is the largest project of this kind ever announced in Romania (Source:; Date: 2017-10-08; Author: Unspecified)

The companies from Baneasa platform contend they want to initiate a giant real estate project worth 1.7bn in the forthcoming period, which will turn the area around Baneasa Shopping City mall and the US Embassy into an independent city. The development will be made through Baneasa Developments companies in the mall, Baneasa Business&Technology Park in offices and through Baneasa Rezidential. Out of the total, nearly 1.1bn euros will go to residential developments, measuring 1.154 million m2 in total, sufficient for 15,000 homes, it being the largest project of this kind ever announced in Romania.


Legislative News (1)

Toader: I talked about the Justice laws, but the most about CVM, with the ambassador of Germany (Source:; Date: 2017-10-08; Author: Unspecified)

The justice minister, Tudorel Toader, stated Sunday, in Iasi, that there had been talks about the justice laws within the meeting had with the German ambassador, but the most approached topic was the Cooperation and Verification Mechanism (CVM).


Politics (2)

Tudose at the meeting with the US delegation led by Mike Turner: Romania was and will remain a reliable partner of the USA and NATO (Source:; Date: 2017-10-08; Author: Unspecified)

Romania was and will continue to remain a reliable partner of the USA and NATO, prime minister Mihai Tudose stated within the meeting he had Saturday at Victoria Palace with a delegation led by congressman Mike Turner, president of the Friendship Group for Romania in the US Congress and of the Sub-committee for tactical aerial and terrestrial forces of the US Congress, in which the US ambassador in Romania, Hans Klemm, also participated.


ORBAN: "Social democrats are communists, not socialists; interests rose because of their fooleries" (Source:; Date: 2017-10-08; Author: Unspecified)

The PNL leader, Ludovic Orban, stated yesterday that the political situation is extremely serious, saying that social democrats are communists and the interests had risen because of the "fooleries" made by them.


Social (2)

Another paradox: The country with the highest growth in official prosperity where the most people flee from during peace (Source:; Date: 2017-10-08; Author: Unspecified)

Romania's resident population was 19,638 thousand people on 1 January 2017, down by 122,000 people compared to 1 January 2016, according to the provisory data published by INS. The public institution presented the negative natural growth (the number of deceased people was by about 68,000 higher than the number of newborns) as main cause of the decrease in population.


The calendar of plastic bags' disappearance, in Romania (Source:; Date: 2017-10-08; Author: Unspecified)

As of next year, plastic bags will be banned in Romania because it is required to transpose an European directive in the national legislation, aiming at reducing consumption of single use bags by 80% by 2019. Countries such as Italy, France, Denmark or Ireland prohibited the use of plastic bags completely and shifted to using textile ones which do not have as many risks for the environment and people's or animals' health.