The economic growth on the first three quarters of 2018 was 4.2%, both in gross series and the seasonally adjusted series, according to data published… Mai mult›
Budget revenue, historical minimum – below two-thirds of EU average as a share of GDP. Declining trend and low values across the board
Romania ranked penultimate among EU member states in 2017 in terms of budget revenues share of GDP, according to Eurostat data. With only 25.8%, our… Mai mult›
Hourly labour costs grew by 13.91% in the third quarter of 2018 compared to the same period in 2017 (+1.53% compared to Q2 2018), according… Mai mult›
“Man, there is still time”/ We meet 13 out of 14 criteria on European dashboard: but how do we overcome two neuralgic points?
According to Eurostat, Romania observed 13 of the 14 indicators set for the scoreboard of the macroeconomic situation in the EU member states last year.… Mai mult›
Romanian research has come below the level registered at the EU accession moment. And it reached one sixth of EU 2020 target
Romania insists on staying on the penultimate position among the European Union member states in terms of R & D expenditure in 2017, according to… Mai mult›
de Marin Pana , 16.4.2018
Romania ranked first in the EU in 2017 by the labour cost increase, according to data published by Eurostat. With an increase of +15% in euro (+ 17.1% in the national currency) our country has far outpaced Bulgaria (+12%), the Czech Republic (+11.3%), Hungary (+10%) and Baltic countries (Lithuania + 9.0%, Estonia +7.4% and Latvia +7.0%)
It is noteworthy that data have been processed at the country level for the entire economy, less the agricultural sector and public administration, in the enterprises with at least ten employees.
Unlike us, the Czech Republic and Hungary recorded slightly lower increases in the national currency than in euro (8.4% and 9.2%, respectively), as their currencies appreciated against the single currency.
Salary cost in Romania has increased 3.3 times compared to 2004 and has advanced by 50% compared to 2008. However, we remain on the second to last position in the EU by this indicator, by approximately 30% above Bulgaria and 30% below Hungary, our geographic neighbours. The evolution (attention, without the public administration) is comparable to the group of BELL countries mentioned in the table below us.
- Evolution of salary cost per working hour in some EU countries
- (euro, without agriculture and public administration)
The problem is that we are not part of the small countries that have adopted or have their currency indexed to euro, but we should be closer to the mid-sized economies with floating exchange rate regimes, such as Hungary, Poland and the Czech Republic. These countries are a few years ahead of us in terms of the economic development.
Cost distribution by economic sectors: Attention to who bears the burden!
Moreover, we are differentiating ourselves from these countries, as well as from the Western practice, not only by the sharper increase in salary costs but also by the distribution of the salary costs by sectors of activity.
In our country, the industry registers a level of 95% of the national average, while the values match, at least, in the Czech Republic (100%), Poland and Hungary (101% each).
In Germany (116% ratio between industry and national average), Spain (112%), Ireland (110%), the Netherlands (109%) or France (106%), this positioning essential for the labour market is even clearer. Of course, we also have countries that are pretty much like us (Bulgaria, 96%), Croatia (92%) or even significantly below, like Portugal (87%), but they cannot be examples to follow.
At the same time, we have salary costs higher than the average on the services segment, which is not a European practice, and the non-business area is 18% above the national average, compared to only 2% at the EU average and minus 1% in the Eurozone.
Which tells us that we are atypical in terms of salary cost distribution
- Salary costs per hour in EU countries by economic activities (euro, 2017)
- Year Business Industry Construction Service Non-business
- EU average
- Eurozone average
If we highlight the desirable situations in green for the manufacturing industry, in purple for the non-business sector, in relation to the European practice that is successful for the development of these economies, and if we highlight in red the situations that appear to be abnormal in this context, we can easily see what we should be aware of and where we should intervene on to salary costs.For example, we can see in the case of BELL group, which does not pay more attention to the payment in the manufacturing industry, but at least it does not exaggerate in the non-business area (which, attention, does not include the public administration in the Eurostat report).
An area where the countries that tend to pay better are Poland, the economy that is closest to us in terms of structure and level of development, as well as Latin countries Italy and Spain.
Lăsați un comentariu
The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult›
The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult›
Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019
The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult›
Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)
The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult›
Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult›
European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP
Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult›
The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult›
The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult›
Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field
Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult›
DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities
The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult›
Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult›
The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult›
IRUM Reghin launched the first 100% Romanian tractor, announced Digi24, designed and built by the company’s engineers, 15 years after the Romanian tractor manufacturing disappeared.… Mai mult›
Romanians from abroad sent as much money to Romania as Government attracted from European funds and subsidies
Romanians working abroad sent EUR 2.695 billion to the country in the first eight months of 2018, equalling the European funds and subsidies received in… Mai mult›