Reintroducing over-excise to fuels: high risks versus uncertain budget results

At the beginning of the current year, the over-excise of 7 euro cents per litre included in the total excise duty has been eliminated At the same time, VAT has fallen by one percentage point, from 20% to 19%, which led to a cheaper litre of fuel by about 50 bani The return to the 2016 excise level would result in about 45 per cent increase in the price of a litre of fuel It should be noted ...
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Reactive and chaotic taxation is back: Rebate tax on fuel, banks deduct 30% of divested receivables, uncultivated agricultural land is surplus

The Government has initiated this week the legislation needed to change taxation as it faces the issues related to the budget deficit and the payment of political commitments – and surprised the business environment with a reactive and chaotic taxation generated by the lack of perspective Some of the measures are, in fact, a return to the decisions of the ruling coalition, as has happened in ...
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Sovereign Investment Fund might postpone Romania’s transition from frontier market to emerging market status

The draft law on the establishment of the Sovereign Development and Investment Fund (FSDI) provides for its exemption from the application of the laws on accelerating privatization, which also included the method of listing on the Bucharest Stock Exchange (BSE) of companies such as Hidroelectrica, Aeroporturi Bucuresti, Maritime Ports Administration and others Meanwhile, these companies have ...
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Tourism Investment Masterplan: Projects of national interest and those of local importance. Objectives: vague and unquantifiable

The Tourism Investment Masterplan, approved on Friday by Mihai Tudose cabinet, contains 29 projects of local importance and three of national interest and all of them will be made with money from the state budget and from local administrations’ budgets, not from EU funds Funding will begin in 2019, depending on the budget possibilities The government decision does not contain any cost ...
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Newest toy of authorities of all kinds: who is pushing energy price. BNR Governor: attention to electricity in economy!

The price of electricity has come last week close to an inexplicable maximum, as the authorities are not just spectators, but they seem to be part of the price increase mechanism The price at which the electricity has been traded on August 3 was three times higher than a year ago when the conditions needed for production were similar, thus reaching 570 lei/MWh The authorities' explanation ...
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Romania – lowest rate of credit recovery from companies in insolvency. Legislation gaps become obstacles to granting loans

The ease with which companies turn to insolvency is one of the structural obstacles to a faster credit expansion, according to a group of economists coordinated by Valentin Lazea, published in the latest issue of the Study notebooks of the National Bank of Romania (BNR) "In practice, it was found that the Romanian insolvency law allowed too easily that interest groups controlling a company or ...
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Strawberry pickers remembered about themselves and leave Romania’s balance of payments on government officials’ responsibility

Amounts sent to the country have significantly declined over the past three years, so indicators showing the importance of this money relative to FDI have significantly deteriorated in 2017 For the first time, the available data show a ratio of only 99% between secondary net revenues and FDI in the first five months, half of what has been recorded in 2013 Changing the way of statistical ...
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Keysfin: Business at seaside is growing, tourism stagnates. Systemic deficiencies that keep Romania on last position within EU

Businesses from the seaside in the HORECA field grew by 66 percent, to 133 billion lei, from 2012 to 2016 and net profit 35 times, to 1329 million lei – supported by the decreased taxation On the other hand, the poor infrastructure and the quality of services below the international standards place Romania on the last position in the ranking by the tourism revenues share in GDP, according to ...
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From where does Romania eat vegetables and fruits – country with agricultural land covering 2/3 of its surface: What and how much others produce – what and how much Romania produces

In the European Union, more than 28 million hectares have been allocated to fruit production and other 21 million hectares to the production of vegetables Eurostat has published the profiled rankings, where Romania, the seventh EU country by size and population, shines by its absence from all chapters     It should be noted that Spain was the member state which paid ...
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How special pensions are covered from state budget

To give a clearer idea of the economic impact of special pensions, we give you the data found about the payment situation in April 2017 We point out that it would be desirable to receive clarifications and a transparent monthly announcement on this information that became of broad public interest lately Statistics on the beneficiaries of special laws (service pensions), April ...
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Great retirement of generals: Heads of militarized institutions flock to get big pensions

Twenty-eight generals, rear-admirals and police quaestors, including 13 SRI generals, have got themselves put in reserve over the past two days (Monday and Tuesday) after the Labour Minister Lia Olguta Vasilescu has confirmed the amendment of the legislation on military pensions Only on Monday, ten SRI generals have been put in reserve In total, President Klaus Iohannis has signed this year ...
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Adventure of an ultra- politicized state with sovereign investment fund: FSDI – under economists’ magnifying glass

The available drafts on the establishment of the Sovereign Development and Investment Fund (FSDI) do not specify the strategy, objectives, management mechanisms or the control mode of the FSDI, the economists asked by cursdeguvernarero warn These drafts give the Fund the status of one of the largest corporate powers in Romania, with the exemption from several legal provisions "The reading ...
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How local investment is sacrificed to curb general government deficit: Surplus of local budget – at highest level in last seven years

The surplus recorded at the end of the first six months of 2017 in the centralized budget of local administrative units (in short, local budgets) climbed to the highest level in the last seven years, according to the official data available on the website of the Ministry of Finance as recorded in the middle of the years analysed The manoeuvre of maintaining a surplus in local budgets to offset ...
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Deloitte simulations for calculating new taxation for employees: net salary decreases in four out of six scenarios

The Ministry of Finance confirmed on Thursday evening that as of January 1, 2018, social contributions will be entirely transferred to the employee’s responsibility while the employer will only have the obligation to withhold and pay these contributions In addition, the Ministry of Finance has also stated that the cumulated rate of these contributions will be reduced from 3925% to 35% so ...
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Romania’s capability to respond to major shocks and opportunities puts it in 49th position in KPMG’s global ranking

Romania went up 32 positions, to the 49th position in the ranking by the ability to respond and adapt to major changes or shocks it would face, from the “Change Readiness Index 2017" research published by KPMG on Wednesday Bhutan and Italy have also made comparable progress Romania went up 19 positions in terms of companies’ readiness level, 35 positions in the governmental capacity to ...
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Prime Minister Mihai Tudose - threats and warnings to banks and oil companies: Romantic period has passed

Prime Minister Mihai Tudose has released several strong signals to banks and oil companies. He says that he is willing to take major risks in ... Read more

MApN states its availability to buy US attack helicopters

Defence Minister Adrian Tutuianu has signed on Wednesday a letter of intent on price and availability regarding the purchase of attack helicopters produced by Bell ... Read more

Minister Ionut Misa: Salary growth to increase public pension fund deficit by 22% in 2018 compared to 2017

The deficit of the public pension fund would be 17.2 billion lei in 2018, up 22% from 14.1 billion lei this year because of the ... Read more

Romania - world champion of frontier markets in 2017, by return on stock exchange investment

Evolution of BET-TR since the beginning of the year The Romanian capital market had the highest growth among all 23 countries in the portfolio of ... Read more

Chinese have obtained Romania's consent to take over former Rompetrol Group. Romanian-Kazakh investment fund remains just a paper

Romanian authorities have agreed on the deal by which China Energy Company Limited (CEFC) took over 51% of the KazMunayGas International shares (KMGI, former Rompetrol ... Read more

Finance Ministry - officially: Yes, social contributions will be transferred from employer to employee but net salaries will not decrease

Social contributions will be entirely transferred to the employee as of January 1, 2018 – the Ministry of Finance announces in a press release. Despite ... Read more

Finally: Romania has officially discovered that nine out of 29 analysed food products have a lower quality than those from Western Europe

Photo: Digi24 Nine of the 29 Romanian food products analysed have a different content than the identical goods brought from shops from Belgium, Germany and ... Read more

Eurostat: Romania had second highest budget deficit in EU in Q1 /2017. Reaction of Finance Ministry

Romania’s seasonally adjusted budget deficit was 3.2% of GDP in the first quarter of 2017. It was the second highest budget deficit in the European ... Read more

Government borrows one billion euros to co-finance large infrastructure projects

The Ministry of Finance (MFP) has contracted a loan of one billion euros with the European Investment Bank (EIB) to cover the state budget contribution, ... Read more

A set of measures proposed by AOAR to Government to improve business environment in Romania

After a period when all major business organizations – Romanian and foreign – have rejected the tax experiments especially those proposed by the Mihai Tudose ... Read more

BNR: Romanian public administrations have financial commitments amounting to 45% of GDP

The share of financial commitments by public administrations remained, between 2015 and Q1 2017, at the same level of 45.2% of GDP, according to the ... Read more

National Centre of Financial Information, which will gather tax databases, is established

The National Centre of Financial Information “will be established by 1 September 2017 within the central office of the Ministry of Public Finance, by merging ... Read more

Mugur Isarescu: "Financial education should start with bankers. You complain that population is not educated and just print some little brochures"

BNR Governor Mugur Isarescu accused the banks, for the second time in two months, that their own employees are not sufficiently qualified but complain that ... Read more

Top priority: Prime Minister Mihai Tudose took over Danube Delta in first government meeting

Prime Minister Mihai Tudose moved the Danube Delta from the responsibility of the Ministry of Environment to the General Secretariat of the Government (SGG). The ... Read more

Alin Teodorescu, former PSD deputy: It is known who steals. 1% of budget is drained through 350 companies

Sociologist Alin Teodorescu told at the “In front of you” TV show at Digi24 that the explanation for the large fortunes of some politicians lies ... Read more

Messages from business community to Government: New tax measures show despair. Right solution: reduce evasion

Business representatives in Romania consider that the fiscal measures from the new government program do nothing but change the perception of the European community towards ... Read more

Government reintroduces threshold of 10,000-euro for tax exemption for programmers

As of July 1, it is reintroduced the requirement that the company benefiting from the tax exemption for programmers needs to register revenues exceeding 10,000 ... Read more

Competition Council, unannounced inspection to Gaz Sud - Possible abuse of dominant position

The Competition Council conducted unannounced inspections at Gaz Sud S.A. and its workplaces in Bucharest, Ilfov, Ialomita and Brasov within an investigation of a possible ... Read more

Business Community reacts to government program: We are surprised, measures announced cannot be taken without impact studies

The Coalition for Romania’s Development (CDR) considers that the fiscal-budgetary measures proposed by the new government program – which has a major impact on the ... Read more

Mugur Isarescu – Explicit position: Save and grow SMEs. Economy is unbalanced. National currency "is where it should"

The Governor of the National Bank of Romania, Mugur Isarescu (foto), has launched harsh allegations against the policy of encouraging consumption, which has unbalanced the ... Read more

ANAF arms itself: Starting Friday, June 23, electronic garnishment system is functional

The National Agency for Fiscal Administration announces on Friday that “electronic garnishment” – the system for communicating the enforcement documents to credit institutions by electronic ... Read more

Romania still has time until November to persuade EU about hosting European Medicines Agency

Current headquarters of the European Medicines Agency The decision on the relocation of the European Banking Authority and the European Medicines Agency from London has ... Read more

Uzina Moreni and Rheinmetall signed documents for establishing joint venture to produce armored conveyors

Prototype previously produced at Uzina Moreni The Ministry of Economy announced on Thursday that Uzina Automecanica Moreni and the German military technology provider Rheinmetall signed ... Read more

Siegfried Muresan has detailed 2018 EU draft budget in Bucharest. Second tier MFP personnel seems to not understand European funds stake

MEP Siegfried Muresan (photo) acknowledged on Friday in Bucharest that member states had an unexpectedly difficult start in accessing the European funding under the new ... Read more

Political crisis /Leu-euro exchange rate, at lowest average since referendum to dismiss Traian Basescu

The National Bank of Romania (BNR) announced an average rate of 4.5872 lei on Thursday, following the sharp depreciation in the first part of the ... Read more

Investments in economy in Q1 2017 - below 2013 level. Issue: Diversion of growth from production to consumption

  In the first quarter of 2017, the net investments in the national economy amounted to 12,836.9 million lei, representing a decrease of 3.1% compared ... Read more

Official proposal: Below 90,000 euros, abuse of office is not a criminal offense

Florin Iordache’s views have been fought also in the past PSD Deputy Florin Iordache, former Justice Minister, said on Thursday that the 200,000-lei threshold for ... Read more

All Romanian commercial attachés from abroad have been convened back to country for an analysis of activity

Alexandru Petrescu, Minister for Business Environment The Ministry for Business Environment, Commerce and Entrepreneurship has asked Romania’s commercial attachés from Romanian embassies to come to ... Read more

"Ciolos amendments" to "Dragnea unitary pay law": Wage pay game or how to deceive 1 million people without even blinking

The evolution of the draft unitary pay law on wages for employees from the public sector and the final version of the law passed by ... Read more

Unitary pay law for state employees - approved by Chamber of Deputies. Increases are postponed - final version

A vote. (Photo: Agerpres) The Chamber of Deputies adopted on Wednesday the bill on pay law with 188 votes in favour, 28 against and 47 ... Read more