News

Daily Newsletter - 22 May 2018

Summary

FIC (1)

Business environment requires the Gov’t not to change the Pension Pillar II. CNP: Contributions will not be suspended as of July 1

 

The Foreign Investors Council (FIC), which brings together companies hiring approximately 200.000 people, is worried by possible policy measures affecting the three-pillar pension savings system and the lack of transparency in which these are analyzed and promoted. The three-pillar system is fundamental taking into consideration the projections for Romania’s demographic evolution in the following decades. In this context FIC believes mandatory private pensions are essential if current employees are to maintain a reasonable living standard at the end of their active lives.

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A Common Effort

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APAP: Private Pension Funds Are the Main Institutional Investor in Romania

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Business organizations in Romania appeal for keeping mandatory private pension funds

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What Is Pillar II, the RON 43 Billion Piggy-bank the Government Wants?

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CNP Says No Suspension

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Radu Craciun: We Must Fight to the End

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Dragnea Denies Disbandment, Admits Suspension of Contributions, Threatens Criminal Complaints

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Dragnea Denies Nationalization

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FIC: Pillar 2 is a fundamental tool for pension savings, second warning from investors in a week

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Cabinet Document Triggered Harsh Response

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Business Community Urges Cabinet to Preserve Pillar II

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Business Community: Pillar II Is Sole Solution

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Cabinet Document Triggers Backlash

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Macroeconomic News (4)

Romania's defense spending among lowest in EU

The 28 members of the European Union spent approximately EUR 200 billion on defense in 2016, the equivalent of 1.3% of the GDP, according to Eurostat data. The lowest defense spending, as percentage of the GDP, was reported by Ireland, (0.3%), Luxembourg (0.4%), Malta and Austria (0.6% each), the Czech Republic and Hungary (0.7% each), Romania and Slovenia (0.9% each).

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Economy situation could delay monetary policy change

The sudden slowdown of the economy could force the National Bank of Romania (BNR) to delay any key rate hike until the second quarter data is in, according to some analysts.

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Cabinet plans investment fund for industrial licenses and know-how

The Cabinet is considering the establishing of a so-called Investment Fund for License-Based Industrialization, financed from the state budget, EU funds, loans and private investment. The fund would be used to buy licenses and production know-how for the use of companies controlled by local capital.

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National livestock falls

The sharp drop in livestock after 1989 has hurt the national animal husbandry sector, a process that has yet to end, according to INS. The number of cattle and pigs dropped by almost 70% last year, while poultry numbers were down 43%.

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Financial News (1)

Banks do better than economy

The biggest banking groups of the national market reported growth rates ranging between 25% and 120% for their first quarter earnings. At the same time, national borrowing jumped 6%, while the economy grew only 4%. BRD-SocGen, Banca Transilvania and BCR remained the most profitable banks on the market, followed by Raiffeisen Bank, ING Bank, UniCredit Bank and CEC Bank.

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Investment News (1)

Globalworth Real Estate Investments is considering new acquisitions

Globalworth Real Estate Investments, the biggest owner of office space in Romania, is planning to invest EUR 150 million in the national market. The company is considering new acquisitions of office space and the construction of two new projects in Bucharest, while also eying the logistic and industrial space market.

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Legislative News (2)

PM Dancila: The procurement law will be modified on Thursday

The procurement law will be modified at the Cabinet's Thursday meeting. The Cabinet will shorten the time allowed for complaint resolutions, according to statements made by Prime Minister Viorica Dancila in Bacau. "We can use the good practices system. It will be beneficial. We are following the German model," said the PM

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Cabinet wants to suspend Pillar II contributions

The Cabinet is considering the suspension of contributions to the mandatory private pension system until the end of the year, according to a government document released by Mediafax. "There's no discussion of this, no evaluation. Any change is out of the question," said Deputy Prime Minister Viorel Stefan.

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Politics (2)

President Iohannis blasts Pillar II controversy

President Klaus Iohannis stated on Monday evening that the idea of suspending all contributions to the mandatory private pension system is "borderline dilettantism and very toxic". The President warned the government to "come to their senses and make their intentions clear once and for all".

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President declines to discuss Orban's move

President Klaus Iohannis declined to comment on the criminal complaint filed by PNL leader Ludovic Orban against Prime Minister Viorica Dancila in order to avoid giving the impression that he influences the investigation.

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Social (1)

58,400 job vacancies reported for Q1

The average number of vacancies in the national economy was 58,400 in the first quarter of this year, up 3,700 from the previous quarter, according to the National Statistics Institute (INS).

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