Daily Newsletter
24 May 2018
Summary
FIC (2) |
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Romanian-German Chamber of Commerce explains why Romania needs Pillar II
The three-pillar system is fundamental taking into consideration the projections for Romania’s demographic evolution in the following decades. The reform of Pillar 2 cannot be justified by evolutions of public debt and current deficits. The future welfare of current employees cannot pe jeopardized by short term thinking. The business community in Romania has warned for the past five years that the mix of lower taxes and higher public spending will have a destabilizing effect. Top |
Pillar II to be discussed at CDR's conference
The Coalition for Romania's Development (CDR), one of the most important initiatives of the local business community, brings together representatives of Romanian and foreign investors. The organization is headed by a board made of the presidents and vice-presidents of six business associations: AOAR, AmCham, CCIFER, AHK, FIC and RBL. Top |
Macroeconomic News (4) |
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AmCham: Investment is at all-time low
Public investment is below 3% of the GDP, the lowest figure in the country's history, according to the "Investment –the Column for Romania’s Sustainable Economic Growth" report released by the US Chamber of Commerce in Romania (AmCham). Top |
Low taxes no longer enough for investors
The fiscal competition is growing fierce as eight EU member states slashed their profit tax rates in an attempt to attract investors. Thus, Romania will no longer be able to use low taxes as an incentive for investors and will have to come up with new ways to attract them, according to a study released by consulting firm Deloitte Romania. While Romania's profit tax is one of the lowest in the European Union, it's still higher compared to Hungary and Bulgaria's. Top |
EC: Romania took no steps to correct budget imbalances
The European Commission has warned that Romania had not taken effective steps to correct the significant budget imbalances and had failed to observe the EC's recommendations for the medium-term budget target. The EC advised the European Union Council to issue a decision for inefficient measures in Romania's case and a recommendation to adopt corrective measures in 2018 and 2019. Top |
Romania's raw steel production reached 3.37 million tons in 2017, up 2.2% compared to the previous year, according to the National Statistics Institute (INS). Investment spending in the metal sector dropped 4.9% year-on-year, while the gross energy consumption fell 2.8%. Top |
Financial News (4) |
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Banca Transilvania shareholders approve bond issue
The shareholders of Banca Transilvania approved at yesterday's general meeting the issue of subordinate loans worth up to EUR 350 million, with a flat or adjustable interest rate and a ten-year maturity. The bonds will be sold in a public offering that would accept up to 150 buyers. The offering will be brokered by BT Capital Partners. Top |
The three-month ROBOR rate, which is used to calculate the adjustable interest rates of most RON-denominated loans, reached 2.77% yesterday, the highest figure since October, 2014, according to the National Bank of Romania (BNR). Top |
Prima Casa clients could benefit from debtor relief rules
Prima Casa clients could see the debtor relief rules expanded to include them, according to a bill discussed by the Senate. The bill was drafted by Senator Daniel Zamfir, the man behind the Debtor Relief Law. The Prima Casa program is currently exempt from the rules allowing debtors to hand in their keys in lieu of payment on grounds that the state covers up to half of a loan's cost. Top |
Number of active cards up 2.9%
The number of active cards used in Romania increased to 12.81 million in the first quarter of this year, up 2.9% year-on-year, according to data released by the National Bank of Romania (BNR). The total number of cards jumped 1.2% to 16.63 million. Top |
Legislative News (1) |
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CCR says latest changes to health regulations unconstitutional
The Constitutional Court ruled on Wednesday that the bill amending and completing certain healthcare laws is completely unconstitutional. The Court has thus accepted and supported President Iohannis's challenge. Top |
Politics (2) |
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Orban: The PSD government has turned Romania in the black sheep of the European Union
The PSD government has turned Romania in the black sheep of the European Union, according to PNL leader Ludovic Orban. Top |
Teodorovici: "I'm waiting for an answer from the president"
The Minister of Finance, Eugen Teodorovici, stated at a press conference held on Wednesday that President Iohannis's criticism of the government is baseless and that the issue of pensions and salaries is the exclusive purview of the Cabinet. Teodorovici added that the President should take a clear position on the judiciary issue. Top |
Social (1) |
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INS President: Romania loses 140,000 residents per year
"We have a natural deficit of around 70,000 people, plus a migration deficit of roughly 70,000 people. It's not as high as before, but that still means we've lost 140,000 people in the past year," said Tudorel Andrei, President of the National Statistics Institute (INS). By the next census, the country's population is expected to fall below 19 million. Top |