A grim picture: list of things we DO NOT know we can produce. What Romania imports from EU and from what countries. It is not too clear (or is it?) and why

Trade exchanges with the EU countries amounted last year to about EUR 43 billion in exports (75% of total exports) and almost EUR 52 billion in imports (77% of total imports) In terms of non-EU trade, exports amounted to EUR 143 billion (25% of total exports) and imports to EUR 154 billion (23% of total imports) Structure of foreign trade in 2016 (million euro) Export ...
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Unitary pay law widens gap between salaries in public and private sectors. Risks

Increasing discrepancies between the wages in the public and private sectors will broaden inequalities between the two sectors and have serious effects on the labour market and the real economy, warn business community and trade unions leaders and human resources experts A forgotten lesson The unitary pay law, in the form presented by Liviu Dragnea, will broaden the salary gaps that have ...
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Accelerated depopulation: Romania’s population has decreased by 74,050 people over last 12 months. Most prominent depopulation – in Teleorman

Romania’s population declined between March 2016 - February 2017 by 74,050 people The number is comparable to the population of a middle-sized city, a capital of a county like Alba Iulia, for instance (74,085 inhabitants) Romania's annual natural growth went, for the first time, below the threshold of -70,000 people: in the 12 months between the beginning of March last year and the end of ...
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A paradox: Hunger of stockholder state to push Romania at top of world dividend yields ranking in 2017 as well

The dividends proposed to stockholders by the management of the companies listed on the Bucharest Stock Exchange (BSE) are very likely to place Romania also this year at the top of the world ranking of the yields of investments made for this purpose Bucharest's capital market ranked first last year among the world's highest average yields, according to a report by the German investment bank ...
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Trade deficit, consolidated by negligence, reached EUR 1.3 billion. After only two months of 2017

  The trade deficit in the first two months of 2017 was EUR 1259 million, 27% higher than the same period of the previous year, according to the INS data The exports increased at a good pace (+ 92%, to EUR 9,7499 million), but have been outweighed by the imports that advanced by 109%, to 11,0089 million The import coverage ratio by exports still maintained a reasonable level (924%, ...
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How badly distributed is cost for wages in Romania – country with the largest increase of labour costs in 2016

Romania leads by far among the EU countries with the highest growth of the labour costs, according to the Eurostat data for 2016 With an increase of + 116% (in euro) registered last year, our country is far ahead of Bulgaria (+78%) and the Baltic countries - Lithuania (+75%), Latvia (+64 %) and Estonia (+56%) To note, the cost for wages in Romania almost tripled in November compared to 2004 ...
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10 billion Sovereign Fund – congenital diseases: midwives were selected, birth certificate is already to be written

The first step for establishing the Sovereign Fund for Development and Investment has been made Wednesday when the Official Gazette published Grindeanu government's decision to create the inter-ministerial committee that will draft the legal framework for the establishment and operation of FSDI A note should be made: the initiative has a great significance for Romania’s big partner ...
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Energy companies – squeezed out of dividends worth billions: government program does not include an estimation of investment

Dividends of at least 2,000 million lei will be paid this year to the state budget, representing profits registered last year by the most important state-owned energy companies, according to the proposals that their management will make to the shareholders: Romgaz, Hidroelectrica, Transgaz, Transelectrica și Nuclearelectrica On the other hand, the government program displayed on the website ...
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An analysis right from very basic: Assets and liabilities of Romanian households in European context

Romania ranks last among the EU countries both in terms of assets and liabilities of households to GDP, according to the latest data published by Eurostat for 2015 With assets (holdings) of only 726% of GDP and liabilities (obligations) of 214% of GDP, we are positioned well below the averages of 2279% for assets and 694% for liabilities recorded at the EU level The amounts that the ...
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Country Report – a vision of BNR Chief Economist: Welfare secrets are competitive workforce, capital placed in mature projects and responsibility of public administration

Sacrificing investment in the budget execution of the first two months of the year brings the analysis of the "2017 Country Report - Romania", issued by the European Commission (EC), back to the forefront Thus, Romanians' welfare must be sustainable, based on employing a healthy and educated workforce in serious investment projects (especially public ones), processes stimulated by a ...
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Interview with Dacian Ciolos/ Nobody expects for Romania to catch up with Germany overnight. But it is expected to maintain an azimuth. If we do things well for Romania, we shall also count for the hard core group

The weeks before the EU summit in Rome, along with the five scenarios outlined by JC Juncker before starting the discussions, have also set Romania on fire The vague terms (several "speeds", "different rhythms and intensities", "the hard core", "united" Europe, etc) are only now to start being clarified A first step – discussion with the former prime minister and European Commissioner Dacian ...
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Defence industry, in a sensitive situation: Romania, before a strategic choice. US or Europe?

Large and influential US and European companies from the defence industry are directly competing for signing major contracts on the Romanian market Each of them brings forward its own arguments, including requests of honouring older promises The context seems to be simple: Romania, a country that decided to allocate 2% of GDP to the defence sector, has the imperative need to upgrade its ...
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Increasingly weaker state with bigger and bigger obligations: temporary budget micro-surplus, briefly explained

The general consolidated budget ended the first two months of 2017 with a 005% micro-surplus of the estimated GDP for the current year, according to the data released by the Ministry of Finance Compared to the same period of the last year, budget revenues declined by almost EUR 500 million and the expenses decreased by about EUR 100 million If considering the most important components of the ...
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Fiscal Council: Romanian civil servants have the highest wages in Central and Eastern Europe, relative to average wages

The salaries of Romanian civil servants are 56% higher than the national average wage, which makes the ratio between the two the highest in the Central and Eastern European (CEE) countries - Hungary, Poland, the Czech Republic, Bulgaria and Slovakia - according to an analysis by Ionut Dumitru, Chairman of the Fiscal Council In all other countries, the ratio varies between about 120% (Poland ...
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Beware of exchange rate! Impact on budget, wage policy and real economic growth

The entire foundation consisting of the indicators forecasted by the National Commission for Prognosis (CNP), an institution reporting to the Government, relies on the assumption of a strengthening domestic currency against euro in four years, between 2017 and 2020 The average exchange rate should be near 446 lei/euro in 2017, 444 lei/euro in 2018 and 442 lei/euro in 2019 and ...
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Romania to buy Patriot missiles - it will be the 13th country in the world that owns this defence system

The Chief of the Military Staff, General Nicolae Ciuca (photo), announced in a press conference on Thursday that Romania intends to buy American missiles Patriot, ... Read more

IMF has improved forecast for Romanian economy growth in 2017 and 2018: but far below Government’s calculations

The International Monetary Fund (IMF) has revised its estimates for the Romanian economy growth to 4.2% from 3.8% – previous estimate for this year, and ... Read more

BNR: Current account on surplus, but external debt increased in first two months of 2017

The balance-of-payments current account posted a surplus of EUR 204 million in the first two months of the year, compared to a deficit of EUR ... Read more

Finance Minister Viorel Stefan: Households to be recognized from tax perspective; their members will be able to jointly pay global tax

The Finance Minister Viorel Stefan announced on Wednesday that the future Tax Code will provide the option for a global tax payment on household income, ... Read more

Essential: Government adopted strategy for decentralization. Timetable and sectors

The Government approved on Wednesday the general strategy of decentralization, comprising the responsibilities that could be transferred to the local authorities and describing the way ... Read more

Chamber of Deputies members offer CCR judges super immunity, higher pensions and diplomatic passports

The Chamber of Deputies passed Tuesday by 178 votes “for”, 39 “against” and 51 abstentions, the bill that provides increased immunity to CCR judges. They ... Read more

Six R&D centres to be established in agriculture. They will receive subsidies

The Ministry of Agriculture and Rural Development (MADR) launched for public debate six draft government decision for establishing or reorganizing six R&D centres specialised in ... Read more

Enel Group paid Romania EUR 401 million imposed by Court of Arbitration in Paris

Enel Group paid Romanian state EUR 401 million, according to the decision of the International Court of Arbitration in Paris announced in February, according to ... Read more

Ionut Dumitru: Half of budget revenues to be spent on public sector wages in 2022. That is unsustainable

The state expenses on public sector wages will reach 12% of GDP in 2022, which means half of the revenues collected to the state budget, ... Read more

Average national wage fell below 500 euros in February. Unique case in EU: manufacturing sector, 12% below national average

The gross average national wage announced by INS for February 2017 was 3,108 lei, by 1.9% below the previous month. The net average national wage ... Read more

Court of Accounts/ 80% of procurement frauds occur in local government. Solution - establishment of Centralized Procurement Unit

The Court of Accounts verified last year nearly 2,700 public entities and identified 23,500 violations that caused a total damage of EUR 400 million. Of ... Read more

Completed draft laws: Changes in criminal codes - no minimum threshold for abuse of office. Law for integrating European Directive on extended confiscation

The draft law for amending the criminal codes will not include any minimum value threshold for the crime of abuse of office, and another draft ... Read more

"Worst of both worlds": Court of Arbitration in Paris decides that CNAIR should pay compensation to contractor of "sunken highway"

Photo: Narcis Neaga, appointed adviser to the current government, starred in the “Sunken highway” play The National Company of Road Infrastructure Administration (CNAIR) will bring ... Read more

Unusual letter: Major US corporations present in Romania ask Prime Minister Grindeanu to not deviate from rule of law

Representatives of several American companies handed over to Prime Minister Sorin Grindeanu, Wednesday, a “roadmap” containing provisions on the rule of law, transparency and efficiency, “that ... Read more

To the last drop: Government is also collecting dividends from what state companies earned in previous years

The Government has found a new source to finance the budget deficit, wages and maybe public investment. The profit obtained by the state companies and ... Read more

Budget implementation after two months: Ministry of Finance reports a surplus - what is behind it

The Ministry of Finance announced that, according to the current working data, the implementation of the general consolidated budget in the first two months of ... Read more

Debts of companies to suppliers in Romania maintain above 56 billion lei. Wholly Romanian-owned companies are most indebted

The outstanding payments of the companies to suppliers in Romania amounted to about 56 billion lei in 2016, compared to 56.5 billion lei in 2015 ... Read more

Romania competes for relocating European Medicines Agency to Bucharest. Argument: 14,000 Romanian doctors and pharmacists working in the EU

The Government approved on Wednesday a memorandum for Romania to apply for the relocation of the European Medicines Agency (EMA) to Bucharest, in the Brexit ... Read more

Three proposals from PIAROM for a real reform of technical and vocational education system

The Romanian Local Investors Employers – PIAROM calls on the authorities to quickly adopt concrete supportive measures for involving the private capital in the technical ... Read more

IMF mission concluded consultations in Bucharest – Government’s options

The IMF mission concluded Thursday a 7-day visit in Romania in the annual process of consultation under Article 4, after a small delegation came to ... Read more

Romanian leu depreciated to reach 4.5654 lei/euro, record level of last four and a half years

The reference exchange rate announced Friday by BNR was 4.5654 lei/euro, 0.3% more than the level reached in the previous session and a maximum level ... Read more

Liviu Voinea (BNR): 7,000 notifications on debt to equity swap, by February; loans amounting to 2 billion lei

The number of notifications registered under the Law on debt to equity swap reached to 7,000 at the end of February, representing total loans amounting ... Read more

Siegfried Muresan: Romania should make joining Schengen a condition to accept two-speed Europe

Member of the European Parliament Siegfried Muresan (photo) said in Strasbourg that the idea of a multispeed Europe is not wrong altogether, and Romania should ... Read more

Valentin Lazea: Absorption of EU funds could lead to a 4.5% increase of potential GDP

The International Monetary Fund (IMF) told the officials of the National Bank of Romania (BNR) that a 95% absorption of the European funds would lead ... Read more